Tata Steel Long Products production and delivery volumes update for Q1FY22

Tata Steel Long Products achieved direct reduced iron (sponge iron) production of 243 thousand tons (KT) in Q1FY2022 compared to 266 KT in Q4FY21 and 134 KT in Q1FY21.

The company recorded crude steel production of 172 KT in Q1FY2022 compared to 186 KT in Q4FY21 and 121 KT in Q1FY21.

Sponge iron sales stood at 179 KT in Q1FY2022 compared to 171 KT in Q4FY21 and 104 KT in Q1FY21. Sales of salable steel stood at 162 KT in Q1FY2022 compared to 172 KT in Q4FY21 and 117 KT in Q1FY21.

Note - Note: i) Sales of sponge iron represents sales to external customers; ii) Sponge Iron production and sale represents both Gamharia and Joda.

Performance highlights:

1QFY22 Crude steel production and Steel Rolled Product sales volume increased by 42%YoY and 39%YoY, respectively as 1QFY21 was impacted due to the COVID-19 pandemic and the stringent nationwide lockdown.

During the quarter, Crude steel production volume decreased by 8%QoQ due to planned shutdown at BF#2 and limited availability of oxygen. Steel Rolled Product witnessed a marginal decrease of 3%QoQ against industry de-growth of around 20%, due to partial lockdowns announced by some of states and temporary shutdowns in few steel consuming sectors amidst the 2nd wave of COVID-19 pandemic. The domestic market has been improving since mid-Jun'21 with easing lockdowns.

Tata Steel Long Products achieved highest ever quarterly Sponge Iron production of 243 KT with a growth of 81%YoY and 8%QoQ in 1QFY22; DRI sales volume also grew 72%YoY and 5%QoQ.

The company has undertaken several vaccination drives at all of its operating locations. Currently, around 87% of its employees are vaccinated for first dose. The company continues to closely monitor COVID-19 situation and take appropriate actions in line with the directions issued by the regulatory authorities keeping in view the health and safety of its employees and the community, and the interests of its customers and other stakeholders.

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