Tata Steel India's crude steel production grew 3% in Q3FY21
Tata Steel today reported its Q3FY21 production and delivery volumes and said Tata Steel India’s crude steel production in 3QFY21 remained strong at 4.60 mn tons, registering a 3 per cent year-on-year (YoY) growth
Tata Steel today reported its Q3FY21 production and delivery volumes and said Tata Steel India's crude steel production in 3QFY21 remained strong at 4.60 mn tons, registering a 3 per cent year-on-year (YoY) growth.
It said, 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 per cent quieter-on-quarter (QoQ) and 4 per cent YoY. Domestic deliveries sharply ramped up to 4.16 mn tons which translates to an increase of 8 per cent QoQ and 4 per cent YoY. Exports shrank below 11 per cent of overall deliveries.
In a regulatory filing the company said, "Tata Steel: 3QFY21 Production and delivery volumes (Provisional) – Tata Steel reports strong quarterly domestic deliveries, exports shrink to 11 per cent% of overall deliveries."
Key segment highlights of our domestic deliveries are:
♦ Automotive & Special Products' segment: On the back of improvement in overall demand, increased share of business from existing customers and new product approvals deliveries in the segment grew 48 per cent QoQ.
♦ 'Branded Products & Retail' segment: Deliveries in the segment grew by 5 per cent QoQ with B2C brands Tata Shaktee and Tata Tiscon achieving best-ever quarterly sales. The company has launched a new B2ECA brand "Galvanova" to serve the need for appliances, false ceiling and solar segments.
♦ 'Industrial Products & Projects' segment: Deliveries in the segment were marginally lower. However, it achieved a 47 per cent QoQ delivery volume growth in high-end segments as we continued to focus on product mix enrichment by catering in sub-segments such as Oil & Gas, Lifting & Excavation and Pre-Engineered Buildings.
♦ Gross revenue generated through 'Aashiyana', the online platform for Individual Home-Builders, surged to Rs.222 crores in 3QFY21, registering a growth of 40 per cent QoQ and 134 per cent YoY.
Tata Steel further said that during the quarter, despite planned maintenance shutdowns, the company was able to ramp-up steel production at Tata Steel Europe by 22 per cent QoQ and 4 per cent YoY. This was aimed at replenishing inventory ahead of improving the market condition and seasonally better 4QFY21. While 3QFY21 steel sales volume declined 7 per cent QoQ and 10 per cent YoY 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.
The company said, they will continue to 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 our employees and the community, and the interests of our customers and other stakeholders. Tata Steel also remains focused on aggressively managing costs and cash flows while pursuing deleveraging.