Jindal Stainless revises guidance to 8-10% growth for FY25 due to export slowdown, Chinese dumping, and European depression.
New Delhi
Jindal Stainless – the country’s largest stainless steelmaker – has revised guidance downwards, to 8 – 10 per cent growth, for FY25; nearly half the growth it was anticipating in the beginning of the year; following slow down in exports, increased Chinese dumping in key markets and continued depression across Europe.
Mid-fiscal, the guidance was brought down to 12 -15 per cent.
According to Abhyuday Jindal, Managing Director, Jindal Stainless did see a 20 per cent-odd volume growth in the domestic market where it was pushing for high-margin, high -value products. But the drag down happened in exports, specially Europe where “there have been no (economic) recoveries”.
Export to domestic sales mix stood at 8:92 for Q3FY25, as against a 12:88 -odd in the year-ago-period.
“So the growth would be around 10 per cent-odd now. In the beginning of the year, we had hoped the recoveries would happen in Europe. But so far it has not happened. Neither do we see that happen immediately in the short-run,” he told businessline.
Tapping into new markets – Middle East, UAE, South Korea and some other South East Asian nations – have helped spread out exports; but even growth here has been flattish QoQ, but 8 -10 per cent up YoY. This though have not offset the slowdown in key European markets.
“It’s early to comment on how President Trump’s proposed tariff regime will play out on us. If he goes against China, it could help up tap the US market better. But, then, it will also mean China will up supplies in other markets – where were are major player – and also into India, which is already facing increased dumping. There could be some pluses and minuses,” Jindal said.
Capex review
Jindal Stainless will review new capex plans, for FY26, because of ongoing trade uncertainties.
Ongoing s ₹5,500 crore capex plan- that include brownfield and inorganic expansion – is already underway with nearly ₹3,700 crore being invested so far. The remaining will be spread out over the next quarter (Q4) and “some going into next fiscal”. There’ll be no change in these announced capex, but new ones – that had been planned towards ramping up of melting capacities, could be slowed down.
“We will be revisiting our capex plans and work them out as per existing market conditions,” he said.
Q3 numbers
For the quarter-ending December 31, 2024, the company’s standalone net revenue was ₹10,066 crore, up 10.8 per cent YoY; profit after tax was at ₹619 crore, down 21 per cent as against ₹779 crore in the year-ago-period.
Net debt (excluding Inter Corporate Deposit) for the quarter was recorded at ₹3,344 crore and the net debt-to-equity ratio was maintained at 0.2.
The Board of Directors also approved payment of interim dividend of 50 per cent or ₹1 per equity share of face value of ₹2 each.
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