Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
steel
A solid set of third quarter numbers in the ongoing fiscal may not reflect the challenging environment for steel producers such as SAIL, Tata Steel and JSW Steel.
Rising raw material costs, which these companies have been only partially able to pass on to consumers, eroded profit margins across the steel sector compared to the preceding quarter.
SAIL, Tata Steel (standalone) and JSW saw sales rise by 15, 16 and 24 per cent respectively compared to the same quarter last year. This was a result of higher realisations across steel products and rising volumes which were up 4-11 per cent.
Profitability at SAIL and JSW over the same period dipped 34 and 26 per cent respectively as the company's raw material costs were up 38 and 40 per cent.
Steel producers have been unable to effect price hikes to keep pace with iron ore and coking coal quarterly price hikes. Indian steel demand is estimated to have grown about 7.5 per cent in 2010 compared to the preceding year, while prices were up 15-30 per cent over the same period.
However, a beneficiary of the steel price hikes is Tata Steel whose integrated domestic operations have enabled the company to profit from the improved realisations. Tata Steel's standalone net profits witnessed strong growth of 27 per cent. This proved to be a crucial counter-balance to the vulnerable European operations which had a lethargic quarter as deliveries and realisations slipped.
Tata Steel's consolidated sales grew 10 per cent even as sales volumes dipped around 6 per cent, thanks to its relatively lucrative product-mix.
Going by governmental and other reports there, this trend of lumpy volumes is likely to continue into the current quarter as Europe grapples with lower private consumption and capital expenditure.
Coking coal prices are estimated to have risen around 30 per cent since the start of 2011 as a result of the floods in Australia. This is likely to pose a very challenging pricing environment for steel producers for whom price hikes may come at the cost of sales volumes or import threats. JSW Steel which is reliant on external sources for over 80 per cent of iron ore (even higher with the addition of Ispat) will be troubled by the fact that iron ore spot prices are up 12 per cent so far this year.
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Citroen’s first vehicle sports a novel design and European interiors. It is also meant to be as comfortable as ...
The pandemic is only the tip of the iceberg that the country’s cash-poor airlines — both regional and national ...
The government is yet to specify the framework of its recently announced old vehicle scrappage policy
Here is a checklist that equips you to discern the market nuances
Sensex, Nifty 50 have witnessed sharp decline
The fund has consistently outperformed S&P BSE 100 TRI over one, three and five years
Returns are superior to immediate annuity plans, but SCSS can secure better rates for new investors sooner if ...
With the public looking beyond mainstream media for reports from the ground, independent digital platforms are ...
The country hasn’t had a quiet moment since the military seized power on February 1
The Tatmadaw sees itself as an embodiment of the nationalist soul of Myanmar. But their brand of nationalism ...
While Supreme Court has cleared the way for women seeking longer tenures and senior roles in the Indian Army, ...
Its name is the starting point of a brand’s journey and can make a big difference in the success sweepstakes
Sober spirits are the in thing
A peek into where ad spends went last year and where they are headed tomorrow
Can Swiggy Instamart disrupt the ecommerce groceries space, currently ruled by the Amazons and Big Baskets? ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor