Tata Steel: 3QFY21 production and delivery volumes (provisional)

Tata Steel reports strong quarterly domestic deliveries, exports shrink to 11 percent of overall deliveries

Mumbai:

Notes: 1. Production numbers: India - crude steel production; Europe - liquid steel production. 2.  Figures for Tata Steel India includes Tata Steel Standalone, Tata Steel BSL and Tata Steel Long Products (from April 09, 2019), without eliminating inter-company transactions.

• Tata Steel India’s crude steel production in 3QFY21 remained strong at 4.60 mn tons, registering a 3%YoY growth.
• 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 mn tons in 3QFY21, lower by 8%QoQ and 4%YoY. Domestic deliveries sharply ramped up to 4.16 mn tons which translates to an increase of 8%QoQ and 4%YoY. Exports shrank below 11 percent of overall deliveries.
  
  Key segment highlights of domestic deliveries are:
  • Automotive and Special Products segment deliveries grew 48%QoQ on the back of improvement in overall demand, increased share of business from existing customers and new product approvals.
  • Branded Products and Retail segment deliveries grew by 5%QoQ with B2C brands Tata Shaktee and Tata Tiscon achieving best-ever quarterly sales. The company launched a new B2ECA brand ‘Galvanova’ to serve the need of appliances, false ceiling and solar segments.
  • Industrial Products and Projects segment deliveries were marginally lower. However, the company achieved a 47%QoQ delivery volume growth in high-end segments as it continued to focus on product mix enrichment by catering to sub-segments such as oil and gas, lifting and excavation, and pre-engineered buildings.
  • Gross revenue generated through ‘Aashiyana’, the online platform for individual home-builders, surged to Rs222 crore in 3QFY21, registering a growth of 40%QoQ and 134%YoY.
• 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. This was aimed at replenishing inventory ahead of improving market condition and seasonally better 4QFY21. While 3QFY21 steel sales volume declined 7%QoQ and 10%YoY due to lower opening inventories and COVID-19 impact at the beginning of the quarter, the mix of deliveries saw further improvements in the automotive and engineering sectors.
• The company continues to closely monitor the pandemic 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.
• The company also remains focused on aggressively managing costs and cashflows, while pursuing deleveraging.