keywords :
JSW Steel while declaring Q4 results said that “The outbreak of Coronavirus COVID-19 pandemic globally and in India is causing a significant disruption and slowdown of economic activity. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing and closures of non-essential services-and the uncertainty associated with the lifting or reimposition of these restrictions, have further aggravated the business environment. The Government of India announced a nationwide lockdown from 25th March 2020 to prevent a community spread of the pandemic resulting in a significant reduction in economic activities. Most of the business operations are impacted by way of interruption in production, supply chain disruption, unavailability of workmen, closure and unavailability of various services etc. The phased easing of restrictions augurs well for the economic revival. Further India unleashed policy stimulus equivalent to 10% of GDP or INR 20 trillion.”
It said “Workforce remobilization will be a key challenge for the core sectors of the economy. However, lower energy prices and expectations of a normal monsoon are positive for consumption outlook. With this a gradual recovery in economic activities is expected in the second half of FY 21.”
It concluded Indian Crude steel production declined 1.5% during the year and finished steel consumption grew by 1.4% in FY20. While there are headwinds in the domestic markets, but the likely supply side adjustments and elevated levels of exports should partially mitigate the weaker domestic demand. A gradual recovery in domestic demand is expected in the second half of FY2021.”