The state-owned company's consolidated net profit for the quarter ended March 31 dropped to INR 1,126 crore (USD 135.22 million) from INR 1,159 crore (USD 139.45 million) in the previous year. Input costs rose by approximately 2% to INR 15,130 crore (USD 1.82 billion).
Steelmakers in India have faced challenges due to heightened imports from China, which has been selling finished steel products at lower prices. This trend coincides with China's struggles in its property sector and the imposition of elevated U.S. tariffs. Additionally, a surge in the costs of essential steelmaking materials like coking coal and iron ore during the quarter further impacted metal producers.
Last week, JSW Steel in India also reported a decline in fourth-quarter profit. Both JSW Steel and Tata Steel are considering significant investments to expand their capacity, aiming to meet the growing demand for steel in India. This demand surge is attributed to increased government spending preceding the ongoing national elections, which has fueled growth in manufacturing and construction activities.
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