Question

Business line: weak demand to dent profit of steel companies this fiscal: icra

Answer 1

As per an Icra report, de-growth in volumes due to lower export demand and a sharper decline in realisations vis-a-vis cotton prices because of higher minimum support price (MSP)-led floor price for cotton are expected to result in a decline in turnover and an estimated 100-150 bps compression in operating profitability of domestic cotton spinners during the year FY2020