Indian giants steelmakers’ performance was relatively better off in Q2 FY16 compared to Q1 FY16. However, steelmakers were still under pressure and few companies registered a huge loss.
India’s largest steel companies like SAIL, JSPL, Bhushan Steel and Monnet Ispat reported a huge loss of INR 1,055 crore, INR 203 crore, INR 733 crore and INR 395 crore respectively.
Huge debt on steelmakers, weak global and domestic sentiments, rising steel export from China and constant subdued demand from end-users have plunged down the profit margin of Indian steelmakers.
On the flip side, Tata Steel registered the highest net profit in Sept’15 at INR 2,523 crore from INR 1,249 crore in Jun’15. Another steel major, JSW Steel’s net profit jumped from INR 31 crore to INR 241 crore in Q2 FY16.
Depreciation of Indian Rupee and imposition of 20% safeguard duty have somewhat supported Indian flat steel producers in the quarter.
Q2 FY16 Results for Indian Steel Companies
| Company | Net Sales in Sept’15 |
Net Sales in Jun’15 |
Net Profit in Sept’15 |
Net Profit in Jun’15 |
| Bhushan Steel | 3,174 | 2,846 | -733 | – 738.96 |
| JSW Steel | 9,653 | 9,982 | 241 | 31 |
| Jindal Steel and Power | 3,166 | 3,123 | -203.67 | – 267.28 |
| Kalyani Steels | 318 | 301 | 29 | 29 |
| MSP Steel & Power | 222 | 260 | -52.95 | – 26.19 |
| Steel Authority of India | 9,113 | 9,384 | -1,055.96 | – 321.64 |
| Tata Sponge Iron | 151 | 142 | 6 | 7 |
| Tata Steel | 9,446 | 9,006 | 2,523 | 1,249 |
| Visa Steel | 216 | 246 | -153 | -119 |
| Monnet Ispat | 502 | 615 | -395 | -375 |
Figures are in INR crore
Source: moneycontrol.com
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