Tata Steel announced that the crude steel production in India remained strong at 4.60 million tons during December 2020 (Q3FY21) registering 3%YoY growth. The production also increased to 2.61 million tons in Europe during the quarter.
However, Tata Steel points out that Tata Steel India saw strong sales momentum in Q3FY21, however, sales volumes were constrained by lower opening inventory post very strong sales in Q2FY21.
As a result, Tata Steel states that deliveries were 4.66 mn tons in Q3FY21, lower by 8%QoQ and 4%YoY. Domestic deliveries sharply ramped up to 4.16 mn tons which translate to an increase of 8%QoQ and 4%YoY. Exports shrank below 11% of overall deliveries.
Key segment highlights of our domestic deliveries as per the regulatory filing are:
'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, we achieved a 47%QoQ delivery volume growth in high-end segments as the company 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%QoQ and 134%YoY.
Tata Steel further said that during the quarter, despite planned maintenance shutdowns, we were able to ramp-up steel production at Tata Steel Europe by 22%QoQ and 4%YoY. This was aimed at replenishing inventory ahead of improving the market condition and seasonally better 4QFY21. While 3QFY21 steel sales volume declined 7%QoQ and 10%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.
"We also remain focused on aggressively managing costs and cashflows while pursuing deleveraging," Tata Steel added.
At around 1 pm, Tata Steel was trading at Rs692.05 per piece down by Rs20.95 or 2.94% on Sensex. The stock has plunged to an intraday low of Rs688.30 per piece.