Reply to your questions
- They add value to semi finished steel, their arrangement has been with Tata steel as of now. They charge for for their services as per their various agreements with TSL.
- Margins are as per agreements with steel players. I think unlike contract manufacturing in electronics/pharma where asset turn is high, this sector has lower asset turn and therefore high margins. In the end ROE and ROCE matters.
- Their contracts are negotiated timely but as per discussion in yesterday’s conference call it looks like gross profits can be sustainable.
| Subscribe To Our Free Newsletter |
