Steel players’ operating profit to decline 20-30% in FY21: India Ratings

As construction activities were impacted due to the extended lockdown, onset of monsoon and mass migration of labourers, operating profit or EBITDA of steel producers is expected to decline by 20-30 per cent in the current fiscal due to lower demand and price realisation, India Ratings (IndRa) has said.

The agency has already predicted a 10-15 per cent reduction in steel demand for the current fiscal, mainly due to the slowdown in economy, decline in auto sector and the impact of COVID-19 pandemic on construction activities.