In a press conference, TV Narendran, MD of Tata Steel India, told CNBC-TV18 that the activity in the highway sector is boosting steel demand and there is a demand pick-up in transmission and railways as well.
Tata Steel posted its fourth quarter net loss of Rs 3,279 crore, worse than Street estimates, although its business in India remains strong as it clocked a net profit of Rs 676 crore on the domestic front.
In a press conference, TV Narendran, MD of Tata Steel India, told CNBC-TV18 that activity in the highways sector is boosting steel demand and there is a demand pick-up in the transmission and railways as well.
He further said that steel prices are sustainable at current levels and expects EBITDA to improve in the coming quarters.
Below is the verbatim transcript of TV Narendran’s interview with Ritu Singh on CNBC-TV18.
Q: How is the steel demand shaping?
A: Firstly there is a lot more activity in the highway sector and that is certainly helping demand not only directly in terms of the steel which is used in building highways but also because it is helping the commercial vehicles business which is showing a strong growth. Both directly and indirectly we gain from what is happening, the investments being made by the government. The second is as I say the power transmission is an area where we have seen lot of activity. Railway’s is an area where we are seeing a lot of activity.
Q: On a group level you have posted a significant loss I wanted to know since there was no timeline given are you confident of some sort of reversal of those losses?
A: The European business is improving as Koushik Chatterjee said on an underlying basis we are actually plus, we hope that things will get better going forward.
Q: As a group level strategy are there other businesses where you are looking to bring in investors specifically for Netherlands?
A: Nothing just now.
Q: The kind of EBITDA per tonne you have been reporting for domestic operations and given the steel prices outlook are they very sustainable at these levels?
A: I think so, because like I said the last quarter EBITDA is nothing to do with prices. It is all to do with cost. So, the prices have certainly improved and hopefully the EBITDA’s will also improve.
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