Indian steelmakers’ struggle to sustain in market continues in Q1 FY16 as the quarter was not profitable for few steel gaint’s like SAIL, Tata Sponge Iron and JSPL. Huge debt on steelmakers, weak global sentiments, rising import threat from China and persistent subdued demand from end-users have lowered the profit margin of the Indian steelmakers.
India’s largest steelmaker, SAIL reported a huge loss of INR 321.64 crore in its net profit in Q1 FY16; fallen by 194.24% against Q4 FY15. While, Bhushan Steel, Tata Steel, Kalyani Steels and JSPL reported Q-o-Q rise by 104.83%, 53.37%, 20.27% and 13.92% respectively in their net profits.
Amid depreciation of INR and expected imposition of safeguard duty, steel imports to India have lowered compared to previous quarter; bringing positive sentiments in Indian market.
Recently, Indian government increased 2.5% custom duty on flat and long steel products in order to curb imports from China, Japan and South Korea. Moreover, steelmakers are urging for imposition of 20-30% safeguard duty.
Q1 FY16 Results for Indian Steel Companies
| Company | Net Sales in Jun’15 | Q-o-Q | Net Profit in Jun’15 | Q-o-Q |
| Bhushan Steel | 2845.72 | 21.56% | – 738.96 | 104.83% |
| JSW Steel | 9981.87 | – 7.45% | 30.75 | – 83.71% |
| Jindal Steel and Power Limited | 3122.63 | – 5.39% | – 267.28 | 13.92% |
| Kalyani Steels | 301.34 | – 0.25% | 28.89 | 20.27% |
| MSP Steel & Power | 260.38 | 8.90% | – 26.19 | – 304.77% |
| Steel Authority of India Limited | 9,383.54 | – 18.19% | – 321.64 | – 196.24% |
| Tata Sponge Iron | 141.93 | – 11.21% | 7.09 | – 17.27% |
| Tata Steel Limited | 9,005.89 | – 14.41% | 1,248.61 | 53.37% |
| Visa Steel | 246.31 | 31.67% | -119.35 | – 0.13% |
Figures are in INR crore
Company’s Reports
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