Tata Steel Long Products provides operational performance update for Q4 & FY21

Tata Steel Long Products announced the Q4 and FY21 production and sales volumes (provisional) figures.

The company achieved direct reduced iron production of 226,000 tons and crude steel production of 186,000 tons in Q4 FY21, compared to direct reduced iron production of 213,000 tons and crude steel production of 173,000 tons in Q3 FY21, and direct reduced iron production of 201,000 tons and crude steel production of 156,000 tons in Q4 FY20.

For FY21, the company reported direct reduced iron production of 797,000 tons and crude steel production of 648,000 tons compared to direct reduced iron production of 764,000 tons and crude steel production of 584,000 tons in Q4 FY21.

The company recorded direct reduced iron sales of 171,000 tons and saleable steel sales of 172,000 tons in Q4 FY21, compared to direct reduced iron sales of 165,000 tons and saleable steel sales of 166,000 tons in Q3 FY21, and direct reduced iron sales of 164,000 tons and saleable steel sales of 137,000 tons in Q4 FY20.

For FY21, the company recorded direct reduced iron sales of 632,000 tons and saleable steel sales of 639,000 tons compared to direct reduced iron sales of 626,000 tons and saleable steel sales of 511,000 tons in FY20.

Key highlights:

-Tata Steel Long Products (TSLP) achieved the highest ever quarterly crude steel production of 186 thousand tons with a growth of 7%QoQ and 19%YoY on the back of debottlenecking at steel melting shop and arcing; FY21 production was also highest ever with 11%YoY growth despite disruption caused by COVID-19 pandemic.

-Sales volumes in 4QFY21 increased by 4%QoQ and 25%YoY to 172 thousand tons, driven by higher production and improved market conditions. The company achieved the highest ever annual sales volumes at 639 thousand tons with 25%YoY growth. TSLP's continued focus towards mix enrichment resulted in 20%YoY growth in rolled product sales volume along with 38%YoY increase in alloy wire rod sales volume in FY21.

- TSLP also achieved the highest ever DRI production in 4QFY21 and FY21. 4QFY21 DRI sales volume increased by 6%QoQ and 12%YoY to 172 thousand tons; FY21 DRI sales volumes increased marginally on YoY basis to 632 thousand tons.

- The company continues to closely monitor the resurgence of COVID-19 cases 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.

- TSLP remains focused on aggressively managing costs and cashflows while pursuing deleveraging.

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