Jindal SAW posts quarterly profit drop on lower demand

Jindal SAW, which makes steel pipes for the energy, transportation and water sectors, reported a smaller fourth-quarter profit on Friday as demand dropped due to a slowdown in construction activity.

Jindal SAW, which makes steel pipes for the energy, transportation and water sectors, reported a smaller fourth-quarter profit on Friday as demand dropped due to a slowdown in construction activity. The company's consolidated net profit after tax decreased 42 per cent to 2.91 billion rupees ($34.5 million) in the three months ended March 31. Revenue from operations fell about 7 per cent to 50.47 billion rupees. Sales of iron and steel pipes dropped 9.2 per cent to 434,000 million tonnes. For further earnings highlights, click.

Key Context

Domestic steel demand in the January-March quarter was lower than a year earlier as government spending, which had ramped up ahead of the 2024 national general elections, tapered off. However, falling prices of iron ore and coking coal, key raw materials, lowered Jindal SAW's expenses, which dropped 4.7 per cent to 46.02 billion rupees.