Operating profits of steel sector to improve in FY19

An expected improvement in capacity utilisation rates in the steel sector, would result in an better operating profitability during FY19, a report said. "The operational performance of key sector participants to remain strong in the remainder of FY19, in view of a robust steel consumption demand, aided by government spending on infrastructure and housing and a modest recovery in private capex cycle," India Ratings and Research (Ind-Ra) said in its report here. A likely improvement in capacity utilisation rates would result in an improvement in operating profitability, due to better absorption of fixed cost, amid steady sales realisations during FY19, Ind-Ra said.