India’s one of the key steel players, Tata Steel has released its sales and production numbers today for the first quarter of FY19 (that started from Apr to Jun’18). As per the quarterly report, the company has posted a growth of 8% in its sales at 2.97 MnT and of 7.82% at 3.17 MnT in its production against the corresponding quarter of previous fiscal. In Q1 FY18, Tata Steel sales were recorded at 2.75 MnT and production at 2.94 MnT.
The growth in company’s sales in Q1 FY19 can be attributed to rise in its automotive sales. According to the reports, Tata Steel’s automotive and special steels sales jumped to 557 kilotonne (kt) in Q1FY19 due to stronger demand and new product approvals. While branded products and retail business have achieved highest ever Q1 sales of 975 kt, registering a year-on-year growth of 12% against 873 kt in Q1 FY18, overall engineering segments have registered 70% growth with 97kt sales in Q1 FY19 against 57kt sales in FY18.
If we make quarterly comparison, the company has performed better in terms of production in the first quarter of FY19 (Apr-Jun’18) against last quarter (Jan-Mar’18) due to better availability of Kalinganagar plant. During Q4FY18, the company’s steel production was impacted by an unforeseen breakdown of the blast furnace at Kalinganagar. However, in terms of sales, Tata Steel has registered a fall of 2% Q-o-Q basis.
In Europe, Tata Steel sales grew marginally to 2.43 MnT in Q1FY19 against 2.4 MnT in Q1FY18 while production went up to 2.81 MnT in Q1FY19 against 2.79 MnT in the corresponding quarter of previous year. On Q-o-Q basis, sales dropped 4.7% from 2.55 MnT in Q4FY18.
Its South East Asia unit reported production of 0.53 MnT in Q1 FY19 against 0.50 MnT in the same period last year while the sales stood at 0.60 MnT. The company has attributed lower production to planned annual shutdown at Tata Steel Thailand.
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