Jindal Stainless (Hisar) Wednesday said its standalone profit after tax (PAT) fell by 59 per cent to Rs 55 crore during the third quarter ended December 31.
The company had clocked Rs 134 crore PAT in the same quarter a year ago, JSHL said in a statement.
During the said quarter, the company said, its revenue dropped by 8 per cent to Rs 2,233 crore compared to Rs 2,439 crore in the corresponding period last year.
"As Nickel prices declined...the markets witnessed continued destocking. Contrary to the expectations of a festive season, demand from major segments like automobiles and consumer goods slowed down during the quarter.
"Though the overall demand for stainless steel remained intact, off-take in certain segments, such as automobiles, temporarily slowed down. Combined with falling Nickel prices, there was continued destocking in the third quarter," JSHL MD Abhyuday Jindal said.
In the subsequent quarters, he said, the company expects a market rebound, given the stable outlook for nickel prices and bottoming out of inventory stocks.
The MD further said: "The stainless steel industry is under stress of subsidised imports, several MSMEs are therefore turning unviable. I am hopeful that the government will review its policies to provide a fair playing field to domestic players".
Shares of the company today ended 1.58 per cent up at Rs 80.50 apiece on the BSE.
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