India: Tata Steel Production Up 3%; Sales Climb 7% in Q2 FY19

Tata Steel- one of India's major steel maker has registered growth of 3% Q-o-Q basis in its its standalone crude steel output to 3.27 MnT in Q2 FY19 as compared to 3.18 MnT in Q1 FY19.

On yearly basis basis company's crude steel production moved up by 2% in Q2 FY19 against 3.2 MnT in Q2 FY18. In Q2FY19 crude steel production was higher amid better plant availability.

During the tenure of H1FY19, Tata Steel's production volumes recorded growth of 5% to 6.44 MnT against 6.15 MnT in similar time frame of previous fiscal.

Tata Steel sales performance surged 7% in Q2 FY19 - Company's standalone steel sales moved up by 7% to 3.18 MnT in Q2 FY19 against 2.97 MnT in Q1 FY19.

On yearly basis the same moved up by 3.2% in Q2 FY19 as compared to 3.08 MnT in Q2 FY18. Also automotive and special products sales grew by 17% on yearly basis due to higher demand from auto sector.

In the time frame of Apr-Sep H1FY19 company's sales grew by 5.3% to 6.14 MnT against 5.83 MnT in similar time frame of previous year.

Bhushan Steel's inventory reduction on higher sales- Tata Steel has acquired the troubled Bhushan Steel under the Corporate Insolvency Resolution Process in Apr'18. Production of Bhushan steel witness the marginal growth of 1% Q-o-Q basis in Q2FY19 over previous quarter.

However sales reported robust increase by 34% in Q2 FY19 to 1.14 MnT as compared to 0.85 MnT in Q1 FY19. This helped in inventory reduction.

However on yearly basis company's production recorded the growth of 23% in Q2FY19 against 0.85 MnT in similar quarter of previous year.And sales grew by 11% against 1.03 MnT in Q2FY18.

During the tenure of Apr-Sep H1FY19 Bhushan Steel production volumes recorded the growth of 14% and sales grew by 6% against similar time of previous year.

Tata Steel India Production Analysis-

Source- Company Reports,SteelMint Research