Ispat Industries expects 25% decline in FY09

Leading steel manufacturer Ispat Industries Ltd today said it expects a 25% decrease in its sales value in the current fiscal due to a slowdown in the manufacturing sector and prevailing economic crisis.     

"The slowdown has affected us and we are expecting a 25% decrease in sales value in the current financial year," Ispat Industries Ltd Vice-Chairman and Managing Director Vinod Mittal told reporters on the sidelines of the India Economic Summit 2008.     

He said the company has cut its production by up to 30 per cent in the current month and it would further cut production by up to 40% in December.     

Mittal also stressed on the need for levy of duties on cheap import of steel into the country.     

"Unless the government cuts some strict import duties, everybody will come and dump steel here. It has a huge impact on us," Mittal said.      Asked if the company would slash prices of steel, Mittal said, "We cannot say right now. We have to wait and watch the market".     

The company expects the market to stabilise from the current slowdown from January 2009 and would take a decision of increasing or decreasing steel prices only then, he added.