By Hritam Mukherjee and Manvi Pant
(Reuters) -India’s Jindal Stainless on Wednesday cut its volumes growth outlook for the ongoing fiscal year for the second time and said it will review its capital spending plans, as it grapples with the flood of cheap Chinese steel in domestic markets.
The steelmaker now anticipates a 10% growth in volume for the fiscal year ending March 2025, down from the 15% it had projected in October.
This is the second time the company reduced its volumes growth forecast this fiscal, after a similar move in 2024.
“Steel dumping from China and Vietnam kept prices and margins under tremendous pressure,” Managing Director Abhyuday Jindal said in a post-earnings call.
The company “will take a relook” at its fresh capital expenditure requirements for future expansion, Jindal said, adding that a concrete decision will be taken in the ongoing quarter.
The company’s third-quarter profit fell 5% year-on-year, as a 10% jump in total expenses outpaced an 8.5% rise in net revenue.
Indian steelmakers have been battling an influx of discounted Chinese steel, with shipments hitting an all-time high during the April-December period, prompting them to seek protection from the government with measures like temporary taxes.
Jindal Stainless’ earnings before interest, taxes, depreciation, and amortization (EBITDA) fell to 12.08 billion rupees in the quarter, down 5.3% year-on-year.
Its exports fell 22%, which Jindal attributed to a slowdown in U.S. and European markets. Domestic sales grew 20% in the reported quarter.
($1 = 86.5280 Indian rupees)
(Reporting by Manvi Pant and Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala and Tasim Zahid)
