Firstpost
  • Home
  • Video Shows
    Vantage Firstpost America Firstpost Africa First Sports
  • World
    US News
  • Explainers
  • News
    India Opinion Cricket Tech Entertainment Sports Health Photostories
  • Asia Cup 2025
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
Trending:
  • Nepal protests
  • Nepal Protests Live
  • Vice-presidential elections
  • iPhone 17
  • IND vs PAK cricket
  • Israel-Hamas war
fp-logo
Stressed steel assets may see lower recovery rates in second round; flat steel segment's growth may moderate to 5-5.5%
Whatsapp Facebook Twitter
Whatsapp Facebook Twitter
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
  • Home
  • Business
  • Stressed steel assets may see lower recovery rates in second round; flat steel segment's growth may moderate to 5-5.5%

Stressed steel assets may see lower recovery rates in second round; flat steel segment's growth may moderate to 5-5.5%

Press Trust of India • June 20, 2019, 19:22:09 IST
Whatsapp Facebook Twitter

Sixteen of the accounts were in the steel sector, where the haircut required was a lower 47 percent, as compared to 69 percent for other sectors.

Advertisement
Subscribe Join Us
Add as a preferred source on Google
Prefer
Firstpost
On
Google
Stressed steel assets may see lower recovery rates in second round; flat steel segment's growth may moderate to 5-5.5%

Mumbai: Even though recovery rates from stressed assets in the steel sector have been higher till now, the same is expected to dip in the next round of resolutions, a report said on Thursday. Operational and financial creditors have had to take a 58 percent haircut on the underlining dues of Rs 1.7 lakh crore in the 94 companies resolved through the Insolvency and Bankruptcy Code (IBC) till March 2019, the research wing of rating agency CRISIL said. Sixteen of the accounts were in the steel sector, where the haircut required was a lower 47 percent, as compared to 69 percent for other sectors. Within the steel sector, 17 new assets involving outstanding dues of Rs 62,000 crore are coming up, it said. “Next lot with debt outstanding of Rs 62,000 crore could see lower recovery rates,” it said. [caption id=“attachment_4299401” align=“alignleft” width=“380”]Representational image. Reuters Representational image. Reuters[/caption] Unlike the first wave of debt clean-up, the upcoming resolution cases shall largely be smaller assets concentrated in the long integrated (42 percent of Rs 62,000 crore in six accounts), sponge iron (38 percent in six accounts), and flat-rerolling space (three accounts, 18 percent), it added. CRISIL estimates that the flat steel segment’s growth is expected to moderate to 5-5.5 percent over the next two fiscals from 7 percent over the previous two fiscals because of a slowdown in automotive sales and sedate demand for capital goods. In the long integrated space, even though the demand is slated to go up, the capacity ramping by established players like SAIL, RINL and JSPL will hurt the stressed players, it said. For steel intermediaries and sponge iron, demand is expected to moderate to 3-4 percent growth, while in the flat re-roller segment, the large players command a larger share, it said. The agency added that bidders will not be aggressive in the next round, given the high capacity addition expected to take place. The steel sector is set to see 28-30 MT capacity addition, apart from ramp-up of under-utilised capacities for accounts resolved in the first list of cases mandated to be resolved through the National Company Law Tribunals (NCLTs). The agency added that this will ensure that the capacity utilisation rates continue to be a high of over 80 percent till fiscal 2023-24, which is likely to dent the bidding, it said.

Tags
NewsTracker SAIL CRISIL JSPL steel sector Stressed Assets sponge iron IBC financial creditors NCLTs resolution cases
End of Article
Latest News
Find us on YouTube
Subscribe
End of Article

Impact Shorts

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

The Tata Harrier EV and Mahindra XEV 9e are new electric SUVs in India. The Harrier EV has a modern, familiar design, while the XEV 9e features a bold, striking look. They cater to different preferences: the Harrier EV for subtle elegance and the XEV 9e for expressive ruggedness.

More Impact Shorts

Top Stories

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Who is CP Radhakrishnan, India's next vice-president?

Who is CP Radhakrishnan, India's next vice-president?

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Israel targets top Hamas leaders in Doha; Qatar, Iran condemn strike as violation of sovereignty

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Nepal: Oli to continue until new PM is sworn in, nation on edge as all branches of govt torched

Who is CP Radhakrishnan, India's next vice-president?

Who is CP Radhakrishnan, India's next vice-president?

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Israel informed US ahead of strikes on Hamas leaders in Doha, says White House

Top Shows

Vantage Firstpost America Firstpost Africa First Sports
Latest News About Firstpost
Most Searched Categories
  • Web Stories
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Tech/Auto
  • Entertainment
  • IPL 2025
NETWORK18 SITES
  • News18
  • Money Control
  • CNBC TV18
  • Forbes India
  • Advertise with us
  • Sitemap
Firstpost Logo

is on YouTube

Subscribe Now

Copyright @ 2024. Firstpost - All Rights Reserved

About Us Contact Us Privacy Policy Cookie Policy Terms Of Use
Home Video Shorts Live TV