Key Highlights:
- Tata Steel India registered 3% y-o-y growth in crude steel production at 4.60 mn t in 3QFY21.
- Tata Steel reports strong quarterly domestic deliveries
- Exports shrank below 11% of overall deliveries.
Tata Steel India saw strong sales momentum in Q3 FY21, however, sales volumes were constrained by lower opening inventory post very strong sales in Q2 FY21. As a result, deliveries were 4.66 mn t in Q3 FY21, down 8% q-o-q and 4% y-o-y. Meanwhile, domestic deliveries sharply ramped up to 4.16 mn t which translates to an increase of 8% q-o-q and 4% y-o-y. Exports shrunk to below 11% of overall deliveries.
Key segment highlights of their domestic deliveries are:
- Automotive & Special Products segment deliveries grew 48% q-o-q 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% q-o-q with B2C brands Tata Shaktee and Tata Tiscon achieving best-ever quarterly sales. They launched a new B2ECA brand “Galvanova” to serve the need of appliances, false ceiling and solar segments.
- Industrial Products & Projects segment deliveries were marginally lower. However, Tata achieved a 47% q-o-q delivery volume growth in high-end segments as they continued to focus on product mix enrichment by catering in sub-segments such as Oil & Gas, Lifting & Excavation and Pre-Engineered Buildings (PEB).
- Gross revenue generated through ‘Aashiyana’, the online platform for Individual Home-Builders, surged to INR 222 crore in Q3 FY21, reporting a growth of 40% q-o-q and 134% y-o-y.
Despite planned maintenance shutdowns, the company was able to ramp-up steel production at Tata Steel Europe by 22% q-o-q and 4% y-o-y during this quarter. This was aimed at replenishing inventory ahead of improving market condition and seasonally better Q4 FY21. Meanwhile, steel sales volume in Q3 declined 7% q-o-q and 10% y-o-y 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.
The company continues to closely monitor the pandemic situation and take necessary actions in line with the directions issued by the regulatory authorities keeping in view the health and safety of their employees and the community, and the interests of their customers and other stakeholders.
Tata Steel also remained focused on managing costs and cash flows aggressively while pursuing deleveraging.
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