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Tata Steel reports 3% YoY growth in domestic steel production

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The steel major reported strong quarterly domestic deliveries, while exports shrinked to 11% of overall deliveries.

Tata Steel's Indian crude steel production rose 2.90% to 4.60 million tons (MT) in Q3 December 2020 (3QFY21) from 4.47 MT in Q3 December 2019 (3QFY20).

On a sequential basis, Tata Steel India's crude steel production has improved marginally from 4.59 MT in Q2 September 2020 (2QFY21).

Tata Steel India saw strong sales momentum in 3QFY21, however, sales volumes were constrained by lower opening inventory post very strong sales in 2QFY21. As a result, deliveries were 4.66 MT in 3QFY21, lower by 8% as compared to 5.05 MT in Q2 FY21 and lower by 4% from 4.85 MT in 3QFY20.

Domestic deliveries sharply ramped up to 4.16 million tons which translates to an increase of 8% QoQ (quarter-on-quarter) and 4% YoY (year-on-year). Exports shrank below 11% of overall deliveries.

During the quarter, despite planned maintenance shutdowns, the company was able to ramp-up steel production at Tata Steel Europe by 22% QoQ and 4%YoY to 2.61 MT. This was aimed at replenishing inventory ahead of improving market condition and seasonally better Q4 March 2021 (4QFY21).

While Q3 FY21 steel sales volume declined by 7% QoQ and 10% YoY to 2.11 MT, due to lower opening inventories and COVID-19 impact at beginning of the quarter, the mix of deliveries saw further improvements in the Automotive and Engineering sectors.

"We also remain focused on aggressively managing costs and cashflows while pursuing deleveraging, the steel maker said in a BSE filing made after trading hours on Friday (8 January 2020).

Tata Steel reported 49.58% decline in consolidated net profit to Rs 1,665.07 crore on 7.4% increase in net sales to Rs 36,475.66 crore in Q2 FY21 over Q2 FY20.

The Tata Steel group is among the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum. It is one of the world's most geographically-diversified steel producers, with operations and commercial presence across the world.

The scrip was down 1.91% to Rs 699.40. It traded in the range of 698.65 and 713.25 so far during the day.

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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: Mon, January 11 2021. 09:23 IST