Q2FY22 Result Update - Higher costs led the miss; Debt falls to lowest levels since FY15 - ACCUMULATE
Sentiments on Chinese demand turned negative across the major steel consuming sectors. While, the impact of lower demand has been equally negated by stringent curbs on production. Given the restricted supplies of Chinese steel in its domestic and exports markets, global steel prices are expected to remain elevated further supported by all-time high coking coal prices. As expected, margins were expected to soften due to unsustainably low coking coal prices. Margins are expected to stabilise at Rs10,000/t, higher by 30% over historical averages in spite of astronomical input prices. Strong...