Pricing challenges likely to persist for steelmakers in Q3

Indian steelmakers posted weak numbers in the September quarter as high inventory costs and declining steel prices led to significant pressure on profits, according to data compiled by Mint.

Earnings before interest, taxes, depreciation and amortization (Ebitda) of leading steelmakers such as Tata Steel, JSW Steel, Jindal Steel and Power, and Steel Authority of India (SAIL) fell

49-68%, sequentially, and 58-90% from the year earlier.

According to data, while the net sales of steel companies rose 7.9%, operating profit declined 69%, and net profit plunged 96% in the September quarter from a year earlier.