Steel demand in India to remain robust: Chandrasekaran
New Delhi: Demand for steel in India is expected to remain robust over the current fiscal year with consumption growing in double digits on the back of infrastructure development, rapid urbanisation and supportive policy reforms, Tata Steel's Chairman, Natarajan Chandrasekaran said at an Annual General Meeting of the company. “The Fiscal Year (FY) 22-23 witnessed some intense geo-political and economic volatility. This in turn has created constant disruptions in the global supply chains creating a bottleneck, with the global steel industry experiencing a ripple effect.
“The global steel industry was also impacted by this volatility in the global environment, which affected the steel demand-supply balance and resulted in volatility in steel prices," said Chandrasekaran. He added India remains to be an exception in the global steel arena, primarily owing to robust government spending and vibrant consumption.
“India's steel consumption grew by over 10% Y-o-Y to 117 million tons in FY2022-23. Given the current stage of development of the Indian economy and the focus on infrastructure development, steel demand growth in India is expected to keep pace with the GDP growth over the next decade," he added. The company, which underwent a bad fiscal year in terms of profits, expects demand from key steel-consuming sectors such as construction, capital goods, railways, and automotive to remain robust.
During FY2022-23, the company’s consolidated revenues stood at ₹2,43,353 crore, a 0.24% decrease Y-o-Y, while the consolidated Profit after Tax (PAT) for FY 2022-23 stood at ₹8,075 crore, a significant 80.65% decrease Y-o-Y. The company attributes this significant fall in profits to the increase in raw material costs, which
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