Assured rail business not enough for steel companies, say experts

Stainless steel coaches, foot overbridges and 4,000 km of track renewal each in 2018-19 and 2019-20 form some of the big orders announced by the railways

While recent orders from the railways for modernising of its infrastructure do augur well for some steel players, analysts wonder if the assured revenue would majorly change the investor outlook for the firms. 
 

Jindal Steel & Power (JSPL), state-owned Steel Authority of India (SAIL, which had the earlier monopoly in supplying), and Jindal Stainless recently won various orders, a revenue plus, given the long-term nature of rail contracts. 

“It will have a substantial value addition to our portfolio, in profitability and volumes,” said Naushad Akhter