India: TATA Steel Registers Growth in Production and Sales in FY'20

The company has today released its production and sales figures of FY'20 and its crude steel production and sales have reported an increase in FY20.

Crude steel production increased by 8% in FY '20- In FY'20 the crude steel output summed up to 18.21 MnT, increased by 8% as against 16.81 MnT in FY '19.

-- In Q4 FY'20 the company's crude steel output from its Indian operations aggregated to 4.74 MnT, up by 6% as compared to 4.47 MnT in the previous quarter.

- This was supported by the ramp-up of Tata Steel BSL and acquisition of Usha Martin Steel business by Tata Steel Long products; Tata Steel BSL also recorded its best-ever annual performance.

Sales volumes up by 4% in FY '20- The producer reported an increase in sales volumes increased by 4% to 16.97 MnT in FY'20 as compared to 16.26 MnT in FY '19.

--Tata Steel India witnessed the highest ever annual sales in branded products and retail segment with an increase of 8% over FY19. The company was successful in maintaining volumes for the Industrial products & projects segment with a strong increase in sales in oil & gas and the Industrial Pipe segment. It also sustained its focus on the automotive & special products segment and increased share of high-end sales in the segment volume from 19.5% in FY19 to 25% in FY20.

--However, on a quarterly premise, the same tumbled due to lock-down by 17% to 4.03 MnT in Q4 contrast with 4.85 MnT in Q3 FY '20.

The company had scaled down its operations to fight against pandemic-

--In the purview of lockdown announced by the Indian government, the practical constraints in continuing operations have increased. Hence, the company is operating its integrated steelmaking facilities at lower utilization levels, while operations at downstream facilities have been suspended and put on care and maintenance mode.

--Based on specific guidelines from central and state governments, the company has been able to operate its mining operations normally.

--The company is monitoring the situation closely and has taken several initiatives to ensure that the operations are in a state of readiness to ramp back as the situation improves and normalcy is restored.

Tata Steel production and sales figures

* TATA Steel India figure is inclusive of Tata Steel Standalone, Tata Steel BSL (from May 18, 2018), and Tata Steel Long Products (from April 09, 2019), without eliminating inter-company transactions.

Quantity in MnT
Source: Company report, SteelMint Research