Jindal Stainless shifted to the breakbulk method for exports amid container shortages and rising costs. Targeting 10-15% of total produce for export, the company faced lower consolidated sales and net profit in the June quarter. Key markets include the US and Europe, with new ventures planned in Japan. View More

Jindal Stainless is exploring the breakbulk method for its export shipments at a time when the unavailability and high costs of containers is pushing up costs, managing Abhyuday Jindal said. ET Guide to ITRMade a mistake in your filed ITR? Check the revised ITR filing last dateHow to file ITR after July 31 deadline?What is the penalty for filing ITR after the July 31 deadline “In stainless steel we have to be a little more cautious as compared to carbon steel, but we are exploring that,” he said in an interaction post the company’s earnings for the June quarter. The country’s largest producer of stainless steel aims to export 10-15% of its total produce in the current fiscal, and counts US and Europe among its key geographies. Its exports in the June quarter were at 10%, down from 17% in the comparable period a year ago. This was largely on account of growth remaining stagnant in US and Europe. “The ongoing Red Sea issue extended transit times and freight cost from India to the western markets, and paucity of containers further affected exports,” the company said. The cost of containers has risen as much as 300% in some segments and have doubled on an average for several areas, Jindal said. “There is a substantial benefit in costs, but our major concern is the impact on quality because stainless steel goes into aesthetic applications,” he said. This transition can help cut down ocean freight costs by as much as 15-25% depending on the port, he said. The company has already sent a one or two shipments through the breakbulk method, and has received a go-ahead from its clients. It will now be pushing up transportation through this route in a larger way from the current quarter onwards. Jindal Stainless is also venturing into newer markets for its exports, including strategic applications in Japan, which will be a first for the company. The higher costs of containers, along with weaker prices of stainless steel because of elevated imports, meanwhile, weighed on the June quarter earnings of the company. Even though sales volume rose more than 5% on year to 578,143 tonnes in the quarter, consolidated sales fell more than 7% to Rs 9,430 crore, and the consolidated net profit was more than 12% lower at Rs 646 crore. The company expects its exports to rise from the current levels, and is also optimistic on demand in the domestic market. “Given the increasing awareness on low-life cycle costing and light-weighting properties of stainless steel, we anticipate growth in the industry in the coming fiscals,” Jindal said. ET Guide to ITRITR Filing Last Date 2024 Extension Live Updates (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)