Tata Steel achieves the highest ever quarterly deliveries of 5.05mt in India

Tata Steel Limited has announced the key production and delivery volumes (Provisional) for 2QFY21.

During 2QFY21, global economic activity has started to recover with phased relaxations in lockdown measures, however, the pace of improvement has been varying across the geographies. Tata Steel continues to closely monitor the 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. We also continue to stay focused on aggressively managing costs and cashflows.

In India, in 2QFY21, overall apparent steel consumption was down by 7.5%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, we increased our crude steel production by 54%QoQ and 2%YoY to 4.59mn tons. We leveraged our robust marketing network and strong customer relationships to reach our highest ever quarterly deliveries of 5.05mn tons which translates to 72%QoQ and 22%YoY growth. We reduced exports to 24% of overall deliveries and sharply ramped up domestic deliveries to 3.86 mn tons which translates to an increase of 164%QoQ and 10%YoY. The growth in domestic deliveries was broad based with YoY growth across all key business verticals:

- 'Automotive & Special Products' segment deliveries grew 10%YoY with pick-up in sector demand especially in 2W and PV segment; we also gained Share of Business in the new PV and LCV launches.

- 'Branded Products & Retail' segment deliveries grew by 5%YoY with deliveries to B2ECA sector growing by 9%YoY; Tata Shaktee achieved a delivery volume growth of 22%YoY with robust rural demand.

- 'Industrial Products & Projects' segment deliveries grew by 13%YoY. We achieved a 31%YoY growth in value added product deliveries within the segment as we continued to focus on product mix enrichment by catering to discerning customers in segments such as Oil & Gas, Lifting and Excavation and Precision Tubes.

In Europe, macroeconomic and steel demand recovery is more gradual. Tata Steel Europe's 2QFY21 sales volume increased by 14%QoQ to 2.26mn tons; Steel production was stable on QoQ basis.

Shares of TATA STEEL LTD. was last trading in BSE at Rs.373.55 as compared to the previous close of Rs. 370.8. The total number of shares traded during the day was 368782 in over 5097 trades.

The stock hit an intraday high of Rs. 382.9 and intraday low of 371.9. The net turnover during the day was Rs. 139229406.

Source : Equity Bulls

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