Thanks Utsavg. Can you please elaborate the M&A point a bit more in detail? How would they loose business? My confusion is arising because I would imagine, with fewer players, this would give them pricing power and greater market share. Also, the demand is likely to increase due to infrastructure push. Wondering what am I missing.
There is a policy for steel companies to split the order to L1 and L2 bidders. Due to recent aquisition of competitors by RHIM, now SAIL cannot give all order to only RHIM. So there will be a loss of some business due to this. However management has guided that it will have minimal impact due to other products which they are planning to supply which will offset this loss of business.
Reference: Recent concall
2 Likes