The last twelve months were challenging to say the least especially for the steel industry. Being a core sector, the industry tracks the overall economic growth in the long term. As you may be aware, steel demand is a derivative of growth in sectors like automobiles, consumer durables and infrastructure and its fortune dependant on the growth of these user industries.
The global steel industry is facing challenges amidst weak global growth, large volumes of exports of finished steel by China, and volatile currency movements. Indian players are subject to three challenges - scarcity of key raw material, moderate domestic demand and proliferation of unrestrained "dumping" of steel. Your Company too is not insulated from these macro-factors and hence impacted by such market conditions resulting in an earnings decline over the last few quarters.
Adverse market demand coupled with scarcity and unavailability of raw materials has put tremendous strain on operations and liquidity.. The cancellation of coal blocks by the Supreme Court and the ..