Steel firms may post 25-50% fall in operating profit in Q2

摘要

Most major steel makers are expected to report a 25-50 per cent year-on-year decline in earnings before interest, taxes, depreciation and amortisation for the second quarter of this financial year, with pricing weakness seen across ferrous metals during the period, according to a report on metals sector by ICICI Securities. Low domestic demand leading to higher exports will further impact margins of steel players, the report said. Earnings of non-ferrous companies, including Hindalco, Vedanta and NMDC, are also expected to be hit owing to the drop in benchmark London Metal Exchange (LME) prices, particularly those of aluminium and copper, between July and the September