Construction Industry News
On account of lower steel prices and weak international demand, India's Jindal Stainless reported a 34.6% fall in fourth-quarter profit.
The nation's largest stainless steel manufacturer by volumes posted a consolidated net profit of $60 million at the end of the quarter. Despite robust demand for steel from the construction and automotive sectors of one of the world's fastest-growing economies, manufacturers are struggling with the impact of falling steel prices.
At the end of the quarter, the nation's largest stainless steel producer by volume reported a combined net profit of $60 million. In one of the fastest growing economies in the world, the construction and automotive industries have strong demand for steel, but manufacturers are struggling with the impact of falling steel prices.
Construction and transportation supplier Jindal reported a 3.2% decline in operating revenues to Rs 94.54 billion for the quarter. Key export markets, including the US and Europe, remained weak, despite sales volumes for the quarter rising 12% year on year on robust domestic demand.
During the quarter, the situation in the Red Sea caused a sharp increase in maritime freight traffic and limited container availability, which in turn depressed profits. According to Managing Director Abhyuday Jindal, the crisis also caused the company to lose some customers due to delivery delays. This was stated at a press conference following the results.
The company reported that while it has seen a resurgence in certain product categories in Europe, the US market is not yet showing signs of recovery. In addition, the company wants to increase its presence in the Middle East and South America.
The Indian government and the stainless steel manufacturer were also in discussions about importing Chinese stainless steel into India. For the financial year 2023-2024, the Jindal Stainless Board proposed to pay a dividend of two rupees per share. Ahead of the announcement, shares of the stainless steel manufacturer finished 4% lower.
