Tata Steel India Production in Apr-Dec 2020 Shrinks by 10% YoY
Tata Steel India’s crude steel production in October-December 2020 remained strong at 4.6 million tonnes, registering a 3%YoY growth. However, Tata Steel
Tata Steel India’s crude steel production in October-December 2020 remained strong at 4.6 million tonnes, registering a 3%YoY growth. However, Tata Steel India’s crude steel production in April-December 2020 slid to 12.2 million tonnes, down by 10%YoY. Tata Steel India includes Tata Steel Standalone, Tata Steel BSL and Tata Steel Long Products without eliminating inter company transactions.
Tata Steel India saw strong sales momentum in October-December 2020 quarter, however sales volumes were constrained by lower opening inventory post very strong sales in July-September 2020 quarter. As a result, deliveries were 4.7 million tonnes in October-December 2020 quarter, lower by 8% QoQ and 4% YoY. Domestic deliveries sharply ramped up to 4.2 million tonnes which translates to an increase of 8% QoQ and 4% YoY. Exports shrank below 11% of overall deliveries. Automotive & 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 & Retail segment deliveries grew by 5% QoQ with B2C brands Tata Shaktee and Tata Tiscon achieving best-ever quarterly sales. Industrial Products & Projects’ segment deliveries were marginally lower. However, Tata Steel achieved a 47% 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 PreEngineered Buildings. Gross revenue generated through Aashiyana, the online platform for Individual Home Builders, surged to INR 222 crores in October-December 2020 quarter, registering a growth of 40% QoQ and 134% YoY.
During the October-December 2020 quarter, despite planned maintenance shutdowns, Tata Steel was able to ramp up liquid steel production at Tata Steel Europe to 2.6 million tonnes up by 22% QoQ and 4% YoY. This was aimed at replenishing inventory ahead of improving market condition and seasonally better January-March 2021 quarter. While steel sales volume in October-December 2020 quarter declined by 7% QoQ and 10% YoY to 2.1 million tonnes 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.
Tata Steel Europe’s liquid steel production & sales in April-December 2020 declined by 9% YoY to 7.6 million tonnes & by 8% YoY to 6.4 million tonnes.