Tata Steel- one of the India’s major steel maker has registered growth of 2% Q-o-Q basis in its standalone crude steel output to 3.33 MnT in Q3 FY19 as compared to 3.26 MnT in Q2 FY19.
On yearly basis, the company’s crude steel production also moved up in same proportion by 2% in Q3 FY19 against 3.27 MnT in Q3 FY18. In Q3FY19 crude steel production was marginally up amid steady plant utilization.
During the tenure of Apr-Dec FY19, Tata Steel’s production volumes recorded growth of 4% to 9.77 MnT against 9.41 MnT in similar time frame of previous fiscal.
Tata Steel sales performance weak by 7% in Q3 FY19 – Company’s standalone steel sales moved down by 7% Q-o-Q to 2.97 MnT in Q3 FY19 against 3.18 MnT in Q2 FY19.
On yearly basis the same moved down by 10% in Q3 FY19 in comparison with 3.3 MnT in Q3 FY18. The company claimed that, the sales volume was lower due to seasonal headwinds, particularly in terms of softer Automotive demand and inventory replenishment.
In the time frame of Apr-Dec FY19, the company’s sales is almost stable at 9.12 MnT compared with similar time frame of previous year. Meanwhile, automotive and special products sales grew by 21% in Apr-Dec’18 period against an industry growth of 12% during the same period last year.
Bhushan Steel’s Production in-line (Tata Steel BSL) – Tata Steel has acquired the troubled Bhushan Steel under the Corporate Insolvency Resolution Process in Apr’18. Production of Bhushan steel witnessed marginal fall of 1% Q-o-Q basis in Q3 FY19 over previous quarter.
Further sales reported drop by 19% in Q3 FY19 to 0.92 MnT as compared to 1.14 MnT in Q2 FY19. This was because of inventory sell-down. The company also claimed that, the sales down due to soften demand mainly in automotive and appliances segments and inventory replenishment.
On yearly basis, the company’s production recorded growth of 8% in Q3FY19 against 0.96 MnT in similar quarter of previous year. And sales dropped by 8% against 1 MnT in Q3 FY18.
During the tenure of Apr-Dec’18, Bhushan Steel production volumes recorded growth of 12% to 3.13 MnT and sales grew by 1% to 2.91 MnT as against similar time of previous year.
Tata Steel India Production Analysis:
| Items | Q3FY19 | Q2FY19 | Q-o-Q | Q3FY18 | Y-o-Y | Apr-Dec FY’19 | Apr-Dec FY’18 | Y-o-Y |
| Provisional | Actual | Change in % | Actual | Change in % | Provisional | Actual | Change in % | |
| Tata Steel Production and Sales Figures (Standalone): | ||||||||
| Production | 3.33 | 3.26 | +2% | 3.27 | +2% | 9.77 | 9.41 | +4% |
| Sales | 2.97 | 3.18 | -7% | 3.3 | -10% | 9.12 | 9.12 | 0% |
| Bhushan Steel Production & Sales Figures: | ||||||||
| Production | 1.04 | 1.05 | -1% | 0.96 | +8% | 3.13 | 2.80 | +12% |
| Sales | 0.92 | 1.14 | -19% | 1.00 | -8% | 2.91 | 2.88 | +1% |
Source: Company Website, SteelMint Research
Qty in MnT
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