Producers of long steel products in the secondary sector in India are expected to see a seven percent growth in their revenues in the current fiscal year of 2024-25, India-based Crisil Ratings said in a report on Wednesday, November 27.
Secondary steel makers produce recycled products using electric arc furnaces (EAFs) and induction furnaces (IFs).
Secondary steel players witnessed a four percent rise in their revenues in the preceding 2023-24 fiscal year, the ratings agency said in its report.
“Secondary long steel producers will see revenue grow by seven percent this fiscal, up from four percent last fiscal, riding on robust domestic demand fuelled by central government spending on housing and infrastructure,” it said.
Steady realisation and increased volume will propel revenues of secondary long-steel producers this fiscal. Owing to higher volumes, the sector's capacity utilisation will rise to 83 percent this fiscal year from 80 percent last fiscal year.
As a result, EBITDA (earnings before interest, tax, depreciation and amortisation) per metric ton will increase to INR 4,000 from INR 3,700, leading to significantly higher cash accrual, the report said.