Tata Steel: India steel demand to stay robust this fiscal yr
NEW DELHI : Demand for steel in India is expected to remain robust this financial year with consumption growing in double digits on the back of infrastructure development, rapid urbanization and supportive policy reforms, Tata Steel chairman Natarajan Chandrasekaran said at the company’s annual meeting of shareholders on Wednesday. “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," Chandrasekaran said.
“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," he added. Chandrasekaran said India remains an exception in the global steel arena, mainly due 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 said. Tata Steel, which faced a challenging FY23, expects demand from key steel-consuming sectors such as construction, capital goods, railways, and automotive to stay strong. During FY23, the company posted a 0.24% drop in consolidated revenues at about ₹2.43 trillion.
Consolidated net profit plunged nearly 81% to ₹8,075 crore. The company attributed this to higher raw material costs, which increased by 40% per tonne, leading to lower steel price realization. “This decline in steel realisations was due to a
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