Tata Steel announced the production and sales volumes (provisional) for Q1 FY21.
Tata Steel India achieved provisional production of 2.99 MT in Q1 FY21 compared to 4.50 MT in Q1 FY20 and 4.73 MT in Q4 FY20. Sales stood at 2.92 MT in Q1 FY21 compared to 3.96 MT in Q1 FY20 and 4.03 MT in Q4 FY20.
Figures for Tata Steel India includes Tata Steel Standalone, Tata Steel BSL (from 18 May 2018) and Tata Steel Long Products (from 09 April 2019) without eliminating inter-company transactions.
Tata Steel Europe achieved provisional production of 2.14 MT in Q1 FY21 compared to 2.65 MT in Q1 FY20 and 2.64 MT in Q4 FY20. Sales stood at 1.94 MT in Q1 FY21 compared to 2.26 MT in Q1 FY20 and 2.39 MT in Q4 FY20.
Tata Steel South East Asia achieved provisional production of 0.39 MT in Q1 FY21 compared to 0.57 MT in Q1 FY20 and 0.53 MT in Q4 FY20. Sales stood at 0.42 MT in Q1 FY21 compared to 0.62 MT in Q1 FY20 and 0.60 MT in Q4 FY20.
Overall 1QFY21 production and sales volumes were lower as the outbreak of COVID-19 and ensuing mobility restrictions severally impacted industrial activity and consumer sentiment across all geographies.
In India, capacity utilization of our upstream facilities was adjusted to about 50% level in April while our downstream units were closed. With the phased opening of the economy, utilization levels have been ramped up gradually to around 80% level by end of June. Downstream facilities have also been restarted and are being ramped up progressively.
To counter the closure of the Indian markets in April and May, exports were ramped up significantly by tapping new markets and improving the supply chain capability and will constitute around 50% of total sales volume in 1QFY21.
While April and May sales were lower, sales improved significantly in June as economic activity resumed in India. With the continued opening of the economy and the improvement in domestic demand, the proportion of domestic sales will increase from 2Q.
While urban markets are showing slow recovery, retail sales, especially in rural markets, are seeing an improvement in demand. During this quarter, we launched two new Coated Brands GalvaRoS and Colornova to meet the evolving needs of our customers. We initiated supplies to National Capital Region Transport Corporation Project, a landmark project. We have also received approval for API X60 & X70 grades for supplies to Oil & Gas segment.
While Europe did not impose a complete lockdown, the weak macroeconomic situation was further impacted by the COVID-19 outbreak. In line with this environment, our production levels in Europe were ramped down to around 70% utilization. Key steel consuming sectors such as automotive and construction sector continue to be under pressure though the demand for packaging material has been robust.
Tata Steel is closely monitoring the situation and taking appropriate actions as per the directions issued by the regulatory authorities from time to time keeping in view the health and safety of its employees and the community and the interests of its customers and other stakeholders.
Tata Steel continues to stay focused on managing costs and working capital and ensuring adequate liquidity.
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