Financial well-being of Indian metallurgists doubt
The restriction of imported goods in India bearing fruit. In August of this year, the national output of steel has increased markedly. But despite the measures taken, the financial situation of steelmakers in question. Two leading steel company finished the second quarter of 2016 with a net loss. While both companies reported operating profit.
In accordance with the data provided by the company Steel Authority of India Ltd’s operating profit II quarter has increased. It amounted to 2.34 billion rupees. The dollar figure is roughly 34.9 million USD. in the same period of 2015, the figure was $ 890 million rupees. But it should take into account the costs of financing, depreciation. As a result, net loss increased to 5.35 billion rupees. In dollar terms, the figure was 80 million USD. In comparison with II quarter of last year, the figure is more than doubled. Net loss for the second quarter of 2015 amounted to 37 million USD. Profit relative to April-June of 2015 decreased by 2.7%. Thus if we consider the tonnage sales volumes increased by 3.7%.
Now Tata Steel. The company’s net loss for the second quarter of this year amounted to 31.8 billion rupees. In dollar terms reached USD 475 million. this damage was caused by the cancellation of almost 500 million USD. The procedure was carried out after the implementation of British industries Tata Steel for the development of long products. The plants were sold to an investment company Greybull Capital. The sales amount was nominal. However, if we consider operating profit compared to the same period of last year, it has increased. Some of the European division of Tata Steel brought in EBITDA of almost 130 million USD. Implementation of problem assets has helped to improve real financial performance of the company. However, improvement will become evident in the third quarter.
Only JSW Steel has been able to demonstrate is certainly positive indicators. The company is the third largest national producer. In the second quarter of this year net profit amounted to more than 10.8 billion rupees. In dollar terms, the index reached 162 million USD. In 2015, the same period saw a slight loss. However, the company’s income compared to the previous year was only 2.2%.
National analysts believe that the future prospects of the Indian producers are encouraging. Hope it justifies the state support the expansion of exports, reduction of imports.