Client indecision in US, Europe a drag on exports, says Jindal Stainless MD

Mumbai: A lack of clarity both in the US and Europe is impacting exports for Jindal Stainless (JSL), even as the company itself is geared up to cater to larger orders, said Abhyuday Jindal, managing director of the company.

The country's largest producer of stainless steel saw exports fall to 5.4% of its total sales in the December quarter, down from 8.6% a quarter ago and 8.5% last year. At the start of the fiscal, the company had said that they are aiming exports in the range of 22,000-25,000 tonnes each month, a 30% growth as compared to the previous year.

"It is the customers who are not clear. The CBAM value that the customers have to pay at the moment in Europe is not clear. Even though orders are still being booked, nobody is booking for the long-term or overstocking," Jindal said.


The Carbon Border Adjustment Mechanism (CBAM) is a method to adjust carbon costs for certain imported goods. It aims at levelling the playing field between locally produced goods in the European Union and those imported from countries which have a weaker carbon pricing policy.

Jindal also said that uncertainty in the US is impacting ex ports.

"In the US, Trump is always changing his stance, so that is causing confusion in the minds of our customers. We are geared up, it is the customers that need a little more confidence in their governments to book larger orders," Jindal said.

The US and Europe are the largest export markets for the company, accounting for nearly three-fourth of their total exports.

OCT-DEC EARNINGS

Jindal Stainless' consolidated net profit for the quarter rose 27% on-year to Rs 828 crore, while revenue from operations was 6% higher at Rs 10,518 crore. Consolidated earnings before interest, tax, depreciation and amortization for the period stood at ₹1,408 crore, up 17% on-year.

At a standalone level, it had a sales volume of 649,857 tonnes, a revenue of Rs 10,632 crore and a profit of Rs 666 crore during the quarter.