Posted on 20 Nov 2015
Tata Steel sees positive outlook
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.
