How Did Major Indian Steel Mills Perform in FY19 ?

Major Indian crude steel producers namely Tata steel,JSW steel,SAIL and JSPLhave released positive output numbers in FY19. The detailed description is given below:

1.JSW Steel production up by 3% in FY19 – JSW Steel holding the capacity of 19.5 MnT registered 3% growth in its crude steel output in FY19 (Apr-Mar) to 16.69 MnT in comparison to 16.27 MnT in previous fiscal.

JSW long steel output increased by 9% to 3.87 MnT and Flat steel production moved up by 3% to 11.74 MnT in FY19 (Apr-Mar).Higher steel prices in domestic market with improved demand in construction and infrastructure sector and acquisition of Monnet Ispat pushed company’s steel output last fiscal.

2.Tata steel production upsurge by 35% in FY19- Tata Steel,India posses steel making capacity of 18.3 MnT in FY19 reported increase in its production numbers.

The company’s crude steel output surge by 35% in FY19 to 16.81 MnT in comparison to 12.48 MnT in FY18 amid ramp-up at both Kalinganagar and Tata Steel BSL.

Company stood by its guidance to ramp up at Kalinganagar plant by all the facilities will be commissioned by FY21-22.

Meanwhile Tata Steel and Tata Steel BSL have proposed a merger of both the companies which will drive operational synergies and efficiency, reduce the regulatory burden, simplify the group structure and recommend a merger ratio of 15 shares of Tata Steel BSL for every 1 share of Tata Steel.

3.SAIL registered growth in its crude steel output in FY19- Indian govt owned steel mill SAIL (Steel Authority of India ltd)  reported increase in its crude steel production by 8% to 16.3 MnT in FY19 against 15.02 MnT in previous fiscal.

In FY19 company’s performance in various parameters like production, cost of production, higher production of value added products apart from a ramp up in production from new mills and sales can be attributed for registering growth in its crude steel output this fiscal.

4.Essar steel output jumped by 10% in FY19- Essar Steel having the steel making capacity of 10 MnT has witnessed the growth of 10% in its crude steel output in FY19.

Company produced 6.8 MnT of crude steel in FY’19 against 6.18 MnT in previous fiscal which is all time high as compared to previous fiscal years.

Thus the company achieves around 80% capacity utilization in downstream products like galvanizing coils, color coated coils and pipes.

However Company is under insolvency resolution which started in Aug’17.

5.JSPL crude steel output surge significantly in FY19- JSPL steel having the installed capacity of 8.6 MnT reported jumped in its production numbers in FY19.

Company’s steel output from Indian operations jumped by 30% in FY19 to 5.25 MnT which was 4.02 MnT in FY18 amid ramp up at its Angul plant Orissa.

Hence, JSPL is confident of accelerating further growth in production & sales.

India Top 5 Crude Steel Producer & their Capacity in FY19

Source: SteelMint & Company Report
Quantity in MnT,Provisional data
*Tata Steel included Bhushan Steel
*JSW Steel included Monnet Ispat