India: TATA Steel achieves best-ever sales volume in Q2 FY ’21

TATA Steel’s India operations have recorded a best-ever sales volume at 5.05 mn t in Q2 FY ’21 as per the recent press release on BSE. The company ramped up its steelmaking and downstream operations back to pre-COVID level, with all major sites operating at around full capacity utilization.

Major highlights are mentioned below:

• Massive growth in sales volume in Q2- On a quarterly basis, sales volumes witnessed a massive growth of 72% to 5.05 mn t in contrast with 2.93 mn t in Q1. The company leveraged its robust marketing network and strong customer relationships to reach the highest ever quarterly deliveries. Also on the yearly basis, the same increased by 22%.
  Robust demand in the domestic market as traders and stockists started restocking since sales were badly impacted by the pandemic in Q1. This resulted in increased sales volumes. The company sharply raised steel prices in Q2 ( Jul-Sep ) quarter and CRC prices witnessed a steep hike on a rebound in auto and white goods demand.
• Crude steel output jumped in Q2- In Q2, the company has churned out 4.59 mn t of crude steel jumped by 54% in contrast with 2.99 mn t in Apr-Jun Q1 FY ’21. Tata Steel India ramped up its steelmaking and downstream operations back to the pre-COVID level. On the yearly basis, the same grew marginally by 2% over 4.50 mn t in Q2 FY ’20.
• Share of exports lowered to 24%- The Company reduced exports to 24% of overall deliveries and sharply ramped up domestic deliveries to 3.86 mn t which translate to an increase of a whopping 164% q-o-q basis and 10% y-o-y basis. Share of exports in Q1 FY ’21 was around 51%. Higher realizations in the domestic market over exports shifted the attention of the mill to the home market.

Tata Steel BSL performance in Q2-

• The company achieved the highest ever quarterly deliveries of 1.28 mn t in Q2 FY ’21 which translates to 83% q-o-q and 23% y-o-y growth.
• Increased crude steel production volume by 73% q-o-q and 7% y-o-y to 1.14 mn t in Q2 FY ’21.
• Reduced exports to 31% of overall deliveries in Q2 FY ’21. Domestic deliveries stood at 0.88 mn t which translates to an increase of 150% q-o-q and 11% y-o-y.