N Chandrasekaran: Increased urbanization, improved infrastructure, and supporting policy reforms will all increase steel demand

6 Jul 2023 , 10:29 AM

According to Tata Steel Chairman N Chandrasekaran, the country’s demand for steel is anticipated to increase as a result of infrastructure improvement, growing urbanization, and supporting legislative reforms. 

At the 116th annual general meeting of the corporation, he stated that domestic steel consumption increased 10% year over year (y-o-y) to 117 M in FY23.

The fluctuation in the world economy had an effect on the steel industry as well. This fluctuation in the demand-supply equation for steel led to a fluctuation in steel prices.

India, on the other hand, seems to be an outlier in the global steel market, largely because of robust government investment and brisk consumer demand, he said.

‘In FY23, India’s consumption of steel increased by over 10% year over year to 117 MT (Million Tonnes).

India will continue to be a significant consumer of steel in the global market due to the country’s expanding infrastructure, growing urbanization, and supporting legislative changes. Over the following ten years, we anticipate that the increase in steel demand will keep pace with that of the GDP.

Chandrasekaran, the Chairman of Tata Sons, commented on the company’s financial performance in FY23 and said it was impacted by higher cost structures because of increased energy and emission-related costs as well as raw material price volatility.

Consolidated revenues for the company in FY23 were Rs 2,43,353 crore, a slight decrease from Rs 2,43,959 crore in the corresponding period last year. This was due to a decrease in steel realizations worldwide, with the exception of European operations.

In the most recent fiscal year, the combined profit after tax was Rs 8,075 crore as opposed to Rs 41,749 crore at the same time last year.

‘We have obtained full insurance cover for the pension liabilities in our UK operations in relation to the GBP 6 billion British Steel Pension Scheme.

‘This indicates that the insurer has guaranteed the cash flows for upcoming pension payments to pensioners. Asset-liability mismatches were avoided, and this was done at no financial loss to the company, according to Chandrasekaran.

According to him, Tata Steel Nederland and Tata Steel UK would keep putting more effort into increasing steel deliveries, boosting yield performance, enhancing the commercial mix, and cutting operating expenses.

For feedback and suggestions, write to us at [e-mail]