Mumbai: Jindal Stainless an Indian stainless-steel maker announced a second-quarter profit that more than halved, hit by import dumping from China and a customs duty on exports.
The New Delhi-based company’s merged profit came in at 1.59 billion Indian rupees ($19.22 million) for the three months ended Sept. 30, against 4.07 billion rupees, a year ago.
India’s stainless-steel industry has been confronting extreme competition from Chinese and Indonesian manufacturers who have been dumping in the domestic market. Adding to the burdens, the Indian government raised export tax for certain steel and stainless-steel products in May.
Jindal’s revenue from operations rose 11.5% to 56.05 billion rupees. Consolidated operating margins tumbled to 6.39% for the reported quarter from 15.08% a year ago.
While input costs fell 3% as raw substance prices cooled off from their peak, power and fuel costs surged about 35%.