Jindal Stainless export targets hit as Red Sea crisis escalates
₹691 crore in the December quarter as domestic demand rose. Consolidated revenue was flat at ₹9,127 crore, with a 43% increase in (Ebitda) earnings before interest, tax, depreciation, and amortization at ₹1,246 crore. “Due to the Red Sea issue, both our time to Europe and our cost to Europe have increased.
The volume we were achieving before Q4 is expected to be impacted until the Red Sea matter is resolved. Europe’s slower pace of recovery, compounded by geopolitical issues, contributes to our cautious outlook. We anticipate a decline in Q4 export sales, so revising our target from 15% to around 12%," said Jindal after the company’s earnings release.
“Despite these challenges, we maintain our volume guidance, as strong domestic demand provides optimism for the future. Despite a global slowdown in stainless steel markets, the domestic market has been witnessing steady growth. Given the promise that India holds for the near and far future, we are confident of meeting our volumes in the next quarter." Jindal Stainless’s exports for the current quarter stood at 12% of total sales, and it plans to mitigate the loss of exports through domestic sales.
The company’s board also gave its in-principle approval to make Iberjindal, Spain, a wholly owned subsidiary of JSL. The company currently owns 65% of its Spanish subsidiary which acts as a service centre and generated ₹143 crore in revenue during the last quarter. “The demand for stainless steel in European markets is robust.
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