The Economic Times

Backward integration, captive power seen aiding profitability of secondary steel players

Secondary steelmakers in India are improving profitability by investing in captive power and backward integration, helping offset volatile raw material and energy costs, according to CRISIL. Operating margins are expected to rise to 6.6% this fiscal, with integrated players earning Rs 1,500-2,000 more EBITDA per tonne than non-integrated peers.