Q1 business update: Tata Steel India production volume up 2% YoY

Tata Steel Limited said in a statement today that domestic deliveries were its main source of revenue in the first quarter of Fiscal Year 2024, with domestic volumes up 18% year over year across major sectors.

Tata Steel said in the filing, India crude steel production stood at 5.01 million tons (provisionally), with a growth of 2 percent year-on-year (YoY) primarily driven by the ramp-up at Neelachal Ispat Nigam Limited (NINL) for the quarter ended June 30, 2023. The company also added that the production was lower QoQ on planned maintenance shutdowns.

Provisional delivery volumes for the company’s Indian vertical were 4.8 million tonnes, an increase of 18% year over year. While the company’s Europe and Thailand verticals reported a fall in deliveries, the exports moderated on a Y-o-Y basis to 0.25 million tonnes. The reason for this issue, which caused a decrease in crude steel output at Tata Steel Europe, was the anticipated relining of BF6 at Tata Netherlands, which started in April. Crude steel production stood at 1.81 million tons while deliveries stood at 1.97 million tons. Additionally, the Indian steel producer reported a tentative output volume of 5.01 million tonnes, an increase of 2% year over year. Although this growth was higher than the previous quarter due to planned maintenance shutdowns that took place during the quarter, the firm attributed it to the ramp-up at their newest addition, Neelachal Ispat Nigam Limited. 

The biggest gainer in terms of delivery volumes were important areas like & Branded Products & Retail and Industrial Products & Projects which saw Y-o-Y increases of 37% and 24%, respectively. The selling of well-known brands as well as the sale of value-added products to important markets like railways, pre-engineered structures, etc., were credited by the steel makers as the causes of this rise.

Source: Media reports