Tata Steel sees positive outlook
Tata Steel (Thailand) is hopeful of a positive performance this fiscal year and sees a better business outlook next year, according to its president and chief executive office Rajiv Mangal.
Part of the contributive factor for the better outlook next year is the government’s attempts to launch several mega-infrastructure projects.
This year the company has continued to improve both its bottom line and top line through continued sourcing on cost-competitive basis and cost control.
The company revised its forecast of total sales to about 1.15 million tonnes from the previous estimated 1.25 million tonnes, in line with the forecast annual flat growth of consumption of combined long and flat steel products in Thailand this year from between 17.3 million and 17.5 million tonnes last year.
However, the company is hopeful of maintaining its domestic market share of rebar steel of between 32 per cent and 35 per cent this year.
Of the company’s total sales this fiscal year, exports are expected to account for more than 10 per cent. It expects to obtain final approvals by early next year from Australia and New Zealand to export steel to their markets. The attempt to increase exports is to offset the declining demand in the domestic market.
The company has forecast steel consumption in Asean of between 65 million tonnes and 68 million tonnes this year, a growth of between four per cent and five per cent year on year. The company is hopeful that it would finish the third quarter (October to December 2015) and this fiscal year 2016 (April 2015-March 2016) in the black, despite some challenges, such as the softening economic situation and influx of some steel products from China,
The company reported profit after tax of Bt47 million in the second quarter (July-September), up from Bt11 million in the first quarter. Its EBITDA (earnings before interest, taxes, depreciation, and amortisation) in the second quarter rose to Bt249 million from Bt216 million in the first quarter.
