Tata Steel's managing director, TV Narendran, said the steel industry will lead private sector investment in India as mills are making healthy profits during the ongoing cycle of high commodity prices.
“The profits we make, almost all of them come back as investments in the country,” Narendran said in an interview.
Tata Steel reported a net profit of 9,573 crore for the December quarter. "And when you look at triggering private sector investment, I think the steel industry can definitely lead, and we should let the steel industry do that with more capacity in India." said.
He said that India, an iron ore producing country, should export more steel than it currently does compared to other countries such as China.
He expects the high commodity prices that changed the fortunes of steelmakers last year to remain "volatile at higher levels". Steel prices were volatile, while input costs for steelmakers such as coal and iron ore were also volatile.
Tata Steel's revenues were sequentially stable in the December quarter, but their margins fell due to sharp commodity prices.
Narendran said there will be more margin tightness in the upcoming quarter.
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