India Ratings recently reported that the domestic steel consumption over April 2020-February 2021 was down by 8.8%. But even with this significant fall, some companies were able to double their profits in FY2021. How were they able to do that?

• It could be because some dealers say,

• upon re-opening of markets, demand is driven by state government projects in areas such as schools, roads and affordable housing with the restart of infrastructure projects.

• Or, it could be because Industry officials mentioned costs of various grades of the metal have increased 60-100% between July 2020 and May 2021.

• Infact, the steel TMT bar prices by primary producers touched the Rs 59,000 per tonne (excluding 18% GST) mark which is about 10% higher than the level prevailing in the month of February 2021.

•  Similarly, cement costs increased 50-70% from 2020 to 2021.

•  At present, the retail price of cement is Rs 420 per bag, whereas, it was only Rs 280 in FY20

• And these price are only expected to increase in the coming months.

But to understand what the impact of this price hike has been on contracting firms all around the country, please allow me to introduce you to our esteemed guest for this week’s episode, Mr Hardik Agrawal, Director, Dineshchandra R. Agrawal Infracon Private Limited

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