Vardhman Special Steels expects margin compression in Q4FY22

Russia's invasion of Ukraine has triggered a massive upmove in commodity prices. Sachit Jain, Vice Chairman and Managing Director of Vardhman Special Steels, discussed the impact of the crisis on the global steel and auto industry.

Because commodity prices have shot up sharply due to Russia-Ukraine war, he expects margin compression in Q4FY22.

Gold prices breach $2000/oz: It's a trailer, full picture remains to be seen yet, says IBJA

In terms of capacity expansion, everything is going on track. “We don’t need the capacity before January 2023, so we will be ready before that,” he said.

Q4FY22 volumes are in-line, there are no shocks on that side.

Overall demand is a bit lower, two-wheelers are down. Because of chip shortage, cars were down, though the demand for cars is good.