Before Budget 2016, here’s a look at the performance of two biggest players from the Indian steel industry

As per data from India Brand Equity Foundation (IBEF), the trust established by the Department of Commerce, the Indian steel industry is expected to become the second-largest steel producer in the world by 2016, jumping from its current third position.

In 2003, the industry stood at the number 8 worldwide, and this growth can be attributed to domestic availability of raw materials like iron ore and not to forget, the dirt-cheap labour that we have in the country. This is why, the Indian steel sector is a major contributor in India’s manufacturing output, which is all the way more required because of PM Modi’s Make in India campaign.

While on one side, the government is trying hard to make the Indian steel industry shine more and more in the coming year by aiming to scale up the production to 300 million tonnes (MT) by 2025, it’s a hard and undeniable fact that in the recent past, the domestic steel industry has seen more hardships than forward moves.

To clarify things a bit, here is the recent data of SAIL and Tata Steels, the biggest players in the steel sector of India, respectively.

SAIL
Last week, Steel Authority of India (SAIL) reported a net loss of Rs.1,528.73 crore for the third quarter (Q3) of the current fiscal year. While last year, the company had earned a net profit of Rs.579.09 crore in the corresponding quarter. Talking of the income, during the quarter under review, it had decreased by 21.06% and gone down to Rs.9,043.71 crore from Rs.11,457.54 crore for the quarter that had ended December 31, 2014.

Tata Steel
Another steel major, Tata Steel disclosed a net profit of Rs.452.82 crore in the third quarter of fiscal 15, much less as compared to the profit it had in the same period last year, which was Rs.880.64 crore. The total income of the company has decreased to Rs.9,146.74 crore for the quarter ended December 31, 2015, as compared to Rs.10,005.07 crore for the quarter that ended December 31, 2014.

These numbers hint at the downfall that the industry is seeing these days, while also explaining why the players want the government to announce a steel-friendly budget for the industry’s revival.