Jindal Stainless cuts its volume growth guidance again

Jindal Stainless, the country’s largest producer of stainless steel, has cut its volume growth guidance for the second time in the current fiscal amid a subdued export market.

The company now sees growth for the current fiscal at around 10%, down from the 15% it had guided for in the previous quarter. At the start of the fiscal, the company had estimated a 20% growth in volumes.

“Definitely US and Europe has slowed down significantly for us, and whatever exports we were able to do, were in the remaining geographies,” managing director Abhyuday Jindal said on Wednesday. Volume growth between April and December has been close to 8%, of which 86% was from the domestic markets.



“We will have to see what happens with tariffs in the US,” said Jindal, on how he sees the exports panning out in the current quarter. If the US goes heavy on China in terms of tariffs, it can further open up the US market for the company. At the same time, its competitiveness in other markets will reduce given that China exports to these regions will grow, he said.

PROFIT FALLS TO ₹654 CR

The company’s consolidated profit for the December quarter was down more than 5% year-on-year at ₹654 crore, while its net revenue rose 8.5% on-year to ₹9,907 crore. Earnings before interest, tax, depreciation and amortization was 3% lower at ₹1,208 crore.


Jindal Stainless also said that it will be reviewing its capital expenditure in the current quarter. “We will definitely be revising, or at least taking a relook on our capex, it will be a very cautious approach,” Jindal said.
Shares of the company gained 3.62% to close at ₹637.40 apiece on the BSE on Wednesday