New Delhi: Indian steelmaker Jindal Steel and Power reported a drop third-quarter profit on Thursday, hurt by muted demand and weak steel prices.

The company reported consolidated net profit after tax of 9.51 billion rupees (nearly $110 million), down nearly 51% from a year ago. Revenue from operations was largely flat at 117.51 billion rupees, while expenses rose 8% to 105.77 billion rupees.

Domestic demand remained muted due to lower construction activity and project delays after government spending cooled off following the national elections last year, analysts said.

Domestic steel mills have also been battling increasing imports of discounted steel, with shipments of finished steel from China hitting a seven-year high in April-December. China, South Korea and Japan accounted for 79% of India's overall finished steel imports.

Chinese steel sells for $25 to $50 per metric ton cheaper than domestic steel and is sometimes as much as $70 lower, Reuters reported last month.

The company also registered a net tax expense of 2.48 billion rupees during the quarter, compared to a gain of around 10 million rupees a year ago.