Tata Steel eyes better H2FY20 on the back of tax benefits, festive season

The government’s proposed tax cuts combined with an uptick in consumption during the festive season would improve the demand situation in the second half of the fiscal year 2019-2020, said TV Narendran, MD of Tata Steel.

The corporate tax rate decision was very positive and in line with what the industry has been talking about, he said.

“It helps companies like us who are investing a lot currently in India because we also have the pressure to deleverage. So actions like this help us in that context,” Narendran added.

Besides tax benefits and festive season, Narendran said the government’s spending on infrastructure will also boost earnings. “We also hope that the infrastructure spend that the government has been talking about will start translating into money flows on the ground so that should help us,” he said.

Compared to South-East Asia, the Middle East or Europe, India has been a big price setter as the country has been exporting a fair amount of steel, said Narendran.

“So if things pick up in India, we believe that steel prices globally can also be positively impacted – microeconomic activity, various governments are taking different steps and we hope we will see the impact of those actions across the world,” he further mentioned.

Grade C125 Steel Strips

Earlier, import was the only option for this material, which was a big hassle. But now, we at BTC are regularly keeping stock of this material in various sizes, and can offer the same off the shelf.

Range:
Thickness: 0.07 mm to 4.00 mm
Width: 8 mm to 500 mm (in thickness lower than 0.6 mm, 4 mm wide material can also be supplied)
Hardness: Fully annealed material with a maximum hardness of 200 VPN & special temper material with hardness ranging from 230 VPN to 285 VPN.

This is a very special grade of steel and is mainly used for making those components where very high tensile strength & yield stress is required. It can achieve hardness of up to 58 HRC Rockwell after Hardening & Tempering.

Application: Mainly used for making Surgical Blades i.e. Scalpels, Metal Cutting Bandsaws, Knitting Needles .etc.

Tata Steel Q1 Net Profit Crashes.

With global steel prices nosediving while production costs rise, Tata Steel, the country’s largest private steel maker, reported net profit of Rs. 702 crore in the June 2019 quarter, falling 63% year-on-year. The company had reported consolidated net profit of Rs. 1934 crore in the year-ago period. Consolidated revenue from operations remained flat in the quarter, at Rs. 35,382.16 crore.

For India, the company reported standalone net profit of Rs. 1567 crore, 15% lower than the Rs. 1856 crore it reported last year. In India, steel prices declined as subdued economic activity, seasonal slowdown and liquidity issues weighed on domestic consumption. Higher net imports further exacerbated the demand supply balance.

The company reported production of 7.15 MMT in the quarter, with India accounting for 4.5 MMT, higher than the 6.45 MMT and 3.64 MMT respectively reported in the same period last year. EBIDTA in its India business fell 4.71% to Rs. 5117 crore in the quarter, from Rs. 5370 crore in Q1FY19. EBITDA/tonne of steel fell to 12,908 from 16,068 in the quarter, while for the consolidated figures crashed from Rs. 11,740 crore to Rs. 8725 crore.

JSW Steel profits fall drastically due to weak demand.

JSW Steel has registered 56.4% fall in its Q1 of FY19-20 (April-June) consolidated net profit at Rs 1,028 crore on the back of lower sales volumes due to subdued steel demand. The company had reported profit of Rs 2,366 crore in the same period last fiscal.

Even though the company maintained its annual guidance in production, which was up three percent, its sales were down by two percent. Revenue of the company declined 3.4 percent at Rs 19,812 crore against Rs 20,519 crore.

The demand slowdown has led to higher inventory levels. While overall, the inventory was at 1.2 million tons, up 3 lakh tons from a year ago, the finished goods inventory increased to 25 days, from the otherwise 20 days.

But the company is hopeful of demand picking up in the coming quarters on the back of higher Government spending on infrastructure.

Hardeneing and Tempering of steel strips.

Hardening and Tempering is a thermal process that strengthens steel through a controlled heating and cooling process.
This process will result in improved mechanical properties and give a tougher more durable product. The hardening process involves heating the steel to above the critical temperature for the given grade and then rapidly cooling. Whilst this process achieves the highest mechanical stengths and hardness’s, steel in this condition is extremely brittle and therefore requires further treatment in the form of tempering. This consists of reheating the steel to a lower temperature and holding the steel at the given temperature for a given period of time. As with traditional annealing (used to soften steels) this process is conducted in an inert atmosphere to avoid oxidation.
The exact temperature and processing times vary with given grades of steel and the process is very specialized.

Stainless Steel Strip – Hardened & Tempered.

These are Precision Steel Strips, anti corrossive and with a very fine micro-sturcture. The grains are super fine. We supply these strips in Grade S-Flex3. This steel has very high resistance power with Molybdenum .5%.

With C% .32, these strips can be supplied with a Tensile Strength of 1800/1900n/mm2.

S-Flex3 strips are supplied in Medical Industry, mainly for manufacturing Opthalmic Blades.

For more details, visit us at, www.btstrips.com