InvestorQ : How do you see the Tata Steel sales and profit numbers for the March quarter of fiscal 2020?
Aditi Sharma made post

How do you see the Tata Steel sales and profit numbers for the March quarter of fiscal 2020?

Answer
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Aashna Tripathi answered.
5 months ago


Tata Steel reported a 14.6% fall in March quarter net sales, but this was largely along expected lines with COVID-19 stalling construction and manufacturing activity in a big way. January-June is a seasonally strong period for the steel industry, when construction projects are in full swing ahead of the monsoon, and customers in the manufacturing sector plan their purchases for the calendar year. However, the lockdown may have entirely changed the narrative. The momentum was abruptly disrupted by Covid-19. With the lockdown extended till 03 May, the steel industry may lose a large part of the peak season demand. Normalization of disrupted supply chains and return of migrant workers to manufacturing and construction zones will take at least one month after the lockdown is lifted. And, by June, the monsoon will set in. So this could almost be like a lost quarter or two quarters for Tata Steel.