Thursday, June 30th, 2022

ICRA Revises Stand On Steel Sector From ‘Stable’ To ‘Positive’


ICRA revised its stand from ‘stable’ to ‘positive’ for the domestic steel sector, as all major listed steel companies have delivered healthy financial performance during the April-June 2021 quarter. After the outbreak of the COVID-19 pandemic in 2020, ICRA had assigned a ‘negative’ outlook on the sector expecting a record fall of 20% in domestic steel demand during the financial year ended March 2021.

ICRA issued a statement saying “It has revised the steel sector’s outlook to ‘positive’ from ‘stable’ following all large listed steel companies reporting their best-ever quarterly performance in Q1 (April-June period) of financial year 2022, and the earnings outlook remaining healthy for the remaining months of FY2022.”

Jayanta Roy, senior Vice-President and group head (corporate sector ratings) of ICRA, said, “After a seven per cent contraction in steel demand in last year following the pandemic, we expect domestic consumption to grow at around 12% in the current fiscal.”

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