Business News

India's finished steel imports touched a five-year high in the first two months of the fiscal year that began in April, with the country continuing to be a net importer, according to provisional government data seen by Reuters. Steel demand has been buoyant in India, the world's second-biggest crude steel producer, as the country remained a bright spot globally with robust demand from its construction and automotive sectors. India imported 1.1 million metric tons of finished steel between April and May, up 19.8% from a year earlier, the data showed. India's steel mills, alarmed by a sharp rise in imports, have repeatedly called for government interventions and safeguard measures. The federal Ministry of Steel has resisted such calls, citing strong local demand. China was a top exporter of steel to India in recent months, alongside South Korea. Major Indian steel producers such as Tata Steel have flagged Chinese imports as a "growing concern." Meanwhile, India's finished steel consumption jumped 10.5% to a six-year high at 23 million tons in April-May, reflecting buoyant demand for the alloy in one of the world's fastest-growing economies. Rapid economic growth and higher infrastructure spending have turned India into a lucrative market for Indian and global steel makers, particularly with steel demand slowing down in Europe and the United States. India was a net importer of finished steel during the previous fiscal year that ended in March. The country imported 8.3 million metric tons of finished steel, up 38.1% from the prior year. The country's finished steel exports fell to their lowest in at least six years. Overseas shipments of steel totalled 0.9 million tons between April and May, down 39.6% year-on-year, the data showed. Crude steel output stood at 24.6 million tons, up 4.9% from a year earlier.

Shares of Tata Motors on Wednesday rallied 2% to the day’s high of Rs 1,010 on BSE after the company announced that its India business is now net debt-free and aims for the Jaguar-Land Rover (JLR) business to be net debt-free in FY25.The company said that its businesses are self-sustaining and the investments are well funded while aiming for EV EBITDA breakeven in FY26.The management also seemed confident while stating its intentions to expand the company's product portfolio to address 80% market share and also aim for 10% EBITDA for consolidated PV and EV operations by FY30.The demerger of CV and PV businesses into separate entities is a logical progression, as per the management, given that both CV and PV businesses have grown sizably and limited synergies exist between the two.Here is what analysts have to say:CLSACLSA said that the management is confident in winning in the domestic segment and a sustainable share gain in PV, coupled with continued leadership in EV will pave the path for growth. They also foresee CV demand to grow at 4-5 CAGR for a few years.They have an 'outperform' rating on the stock with a target price of Rs 1,181.JM FinancialIn respect of CV business, the industry is expected togrow by a single digit during FY25 while Tata Motors is targeting a strong double-digit EBITDA margin for its CV business and expects PV-EV business to be EBITDA breakeven in the medium term. Net-cash position in domestic business drives comfort.JM Financial rates Tata Motors as a 'buy' with a target price of Rs 1,200.Motilal OswalThe domestic brokerage firm expects JLR margins to remain stable over FY 24-26 given the rising cost pressure as it invests in demand generation, normalizing mix, and the EV ramp-up, which is likely to be margin-dilutive. Even in India business, both CV and PV businesses are seeing a moderation in demand. Motilal has a 'neutral' rating on the stock with a target price of Rs 955.ICICI SecuritiesNew nameplates like Curvv, Sierra, Avinya etc. and the corresponding EV portfolio of 10 models would help TTMT address a wider PV market base ahead. Tata Motors is aiming to reach 10% EBITDAM in PVs and become EBITDA neutral in EVs by FY26.With this, ICICI Securities has a 'reduce' view on the stock with a target price of Rs 915.Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times.