Steel firms' performance to improve further on steady sales: India Ratings

Material deleveraging still a remote possibility for some steel players on the back of capacity expansion plans, leveraged buyouts of stressed assets

India Ratings expects the domestic steel industry's operational and financial performance to continue to improve, backed by steady sales realisations and higher margins -- supported by an improved demand-supply balance. 

  

The domestic steel sector will witness healthy global demand growth in the remainder of FY19, leading to an increase in the capacity utilisation rates, said the ratings agency in its report.  

Margin improvement in the near-term would be backed by operating leverage with higher volumes, as well as, to some extent, from the expected softening in coking coal prices, partly countered by inventory losses and steady steel prices on the