Tata Steel Chief Foresees Steady Domestic Steel Sector Growth

SEATTLE (Scrap Monster): N. Chandrasekharan, Chairman, Tata Steel said that growth of Indian steel sector is likely to remain stable despite challenges posed by Russia-Ukraine conflict and high inflation worries. In the company’s annual report, he said that the stable growth prospects are mainly on account of robust domestic steel demand and boosted export opportunities on account of global supply-demand dynamics.

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The strong steel prices helped the company to deliver robust financial performance during 2021-’22. It recorded best-ever EBITDA performance, in the midst of adverse market conditions. The consolidated EBITDA stood at INR 68,830 crore, at an EBITDA margin of 26%. Furthermore, the company reported notable progress in business restructuring, innovation and growth.

The company announced that it will continue to invest significantly in new technologies to drive its digital transformation efforts. The pilot simulated digital replica of factories using real-time data analytics has opened up possibilities of data-driven ‘Smart Factories’ in the future.

However, the ongoing war in Ukraine, imposition of fresh lockdowns in China, rising inflation and persisting supply shortages are likely to impact global GDP growth during the current year, Chandrasekharan noted.