You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

Tata Steel gains after decent Q2 update

Capital Market 

Tata Steel rose 1.19% to Rs 378 after the company said it achieved the highest ever quarterly deliveries of 5.05 million tons in India.

Tata Steel India's production volume rose 2% to 4.59 million tonnes while the delivery volumes jumped 22.28% to 5.05 million tonnes in Q2 FY21 over Q2 FY20.

In India, in Q2 FY21, overall apparent steel consumption was down by 7.5% year-on-year (YoY) while crude steel production was down by 1.9% YoY. In this environment, Tata Steel India ramped up its steelmaking and downstream operations back to pre-COVID level, with all major sites operating at around full capacity utilization.

During the quarter, the company reduced exports to 24% of overall deliveries and sharply ramped up domestic deliveries to 3.86 million tonnes. The growth in domestic deliveries was broad based with YoY growth across all key business verticals, the steel major added.

Tata Steel Europe's production volume declined 12.24% to 2.15 million tonnes while the delivery volumes fell 1.31% to 2.26 million tonnes in Q2 FY21 over Q2 FY20. "In Europe, macroeconomic and steel demand recovery is more gradual, the company said in a BSE filing.

Tata Steel South East Asia's production volume contracted 8.77% to 0.52 million tonnes while the delivery volumes were down by 8.33% to 0.55 million tonnes in the second quarter as compared to the same period last year.

Tata Steel said that during Q2 FY21, global economic activity has started to recover with phased relaxations in lockdown measures, however, the pace of improvement has been varying across the geographies. The company continues to stay focused on aggressively managing costs and cashflows.

The steel major reported consolidated net loss of Rs 4,648.13 crore in Q1 June 2020 as against net profit of Rs 714.03 crore in Q1 June 2019. Consolidated net sales slumped 32.7% to Rs 23,812.50 crore in Q1 June 2020 over Rs 35,382.16 crore in Q1 June 2019.

Tata Steel group is an Indian multinational steel-making company

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, October 09 2020. 11:19 IST