MUMBAI (Scrap Register): On the back of increasing domestic demand and protectionist measures the income of the India Steel companies are expected to increase in the next 12 months, as per Moody's Investor Service.
The earnings of the two top Indian Steel companies Tata Steel and JSW steel are expected to remain steady or increase significantly in the coming 12 months on the back of robust demand and protectionist measures.
Tata Steel’s Indian operations is expected to see an increase in the earnings before interest, taxes, depreciation and amortization by almost a third in the current fiscal ending March 31 2018, on the back of its new unit with production capacity of 3 million tons.
"We have changed the outlook on the Asian steel industry to stable from negative primarily because we expect the profitability of our rated Asian steel companies -- measured by EBITDA per tonne -- to remain stable during the coming 12 months following a significant improvement that began in the second half of 2016," Chris Park, associate managing director, Moody’s quoted.