Tata Steel’s sales momentum continues as Q3 production grows 3% Y-o-Y
Tata Steel India reported a 3% year-on-year growth in its crude steel production at 4.60 million tonne for the third quarter of the current fiscal with momentum continuing in sales, though constrained by lower opening inventory post a stronger sales during the second quarter of the fiscal.
Deliveries were 4.66 MT in the third quarter, lower by 8% quarter-on quarter and 4% y-o-y. Domestic deliveries sharply ramped up to 4.16 MT. Exports shrank below 11% of overall deliveries.
Automotive & Special Products’ segment deliveries grew 48% q-o-q on the back of improved demand, increased share of business from existing customers and new product approvals. Branded Products & Retail’ segment deliveries grew by 5% q-o-q 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 & Projects’ segment deliveries were marginally lower. It achieved a 47% q-o-q delivery volume growth in high-end segments as it continued focusing on product mix catering to sub-segments like oil and gas, lifting and excavation and pre engineered buildings.
Gross revenue generated through ‘Aashiyana’, the online platform for individual home builders surged to Rs 222 crores in the third quarter, registering a growth of 40% q-o-q and 134% y-o-y.
During the quarter, despite planned maintenance shutdowns, the company was able to ramp-up steel production at Tata Steel Europe by 22% q-o-q and y-o-y. This was aimed at replenishing inventory ahead of improving market conditions and seasonally a better fourth quarter. While the third quarter steel sales volume declined 7% q-o-q and 10% y-o-y 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 the engineering sectors.
Source: Financial Express