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Tata Steel Long Products soars after Q4 business update

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Tata Steel Long Products jumped 4.44% to Rs 780.30 after the company said its crude steel production rose 19% to 186 thousand tons in Q4 FY21 over Q4 FY20.

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 shopand arcing.

FY21 production was also highest ever with 11% YoY growth despite disruption caused by COVID-19 pandemic.

Sales volumes in Q4 FY21 increased by 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," the company said in a statement.

The company also achieved the highest ever direct reduced iron (DRI) production in Q4 FY21 and FY21. Q4 FY21 DRI sales volume increased by 12% YoY to 172 thousand tons and FY21 DRI sales volumes increased marginally on YoY basis to 632 thousand tons.

"TSLP remains focused on aggressively managing costs and cashflows while pursuing deleveraging," the Tata Group company said.

TSLP is one of India's largest merchant sponge iron manufacturers. The company is engaged in the production of sponge iron by direct reduction method of iron ore and power generation from waste heat.

The company reported a consolidated net profit of Rs 304.40 crore in Q3 FY21 compared with net loss of Rs 112.19 crore in Q3 FY20. Net sales during the quarter jumped 36.5% year-on-year (YoY) to Rs 1364.17 crore.

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

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First Published: Wed, April 07 2021. 12:08 IST