India: Tata Steel Sales Volume Rise 17% Q-o-Q on Improved Market Sentiments
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Tata steel released its Q3FY'20 provisional results today. The company's crude steel and sales volumes witness an increase in 9M FY'20.
1: Company's sales volume rose by 8% in 9M FY'20- In 9M FY'20, the company's sales showed an 8% uptrend and stood at 12.94 MnT when compared with 12.02 MnT in the similar time frame of FY'19.
The company's sales ascended by 17% to 4.84 MnT in Q3 FY'20 over 4.13 MnT in Q2 of the current fiscal.
Better demand from the automobile segment, along with the growth in industrial products, and projects kept the sales volume rising during the quarter. Branded Product & Retail segment grew by 23% Q-o-Q, while Industrial Products and Projects grew by 12% Q-o-Q.
However, on a yearly comparison, the same surged by 24% in Q3 FY'20 as against 3.89 MnT in Q3 FY'19.
The company also expects that steel prices shall improve further with strong retail demand and ongoing restocking demand at the dealers' ends.
2: Company's crude steel output up in 9M FY'20- In (Apr-Dec) 9M FY'20, the aggregate crude steel output by the company stood at 13.46 MnT, marginally up by 4% as compared to 12.90 MnT in 9M FY'19.
However, the company's crude steel production stood at 4.46 MnT in Q3 FY'20, slightly down by 1% as against 4.5 MnT in Q2 FY'20.
In the month of Nov'19, Tata steel witnessed a maintenance shutdown at its blast furnace for one week. Owing to this, the expected impact in finished steel production might have been around 50,000-60,000 MT.
Meanwhile, the same inched up by 2% in Q3 FY'20 over 4.38 MnT in Q3 FY'19.
Tata Steel 9M FY'20 Results-
| Items | 9M FY'20 | 9M FY'19 | Change in % | Q3 FY'20 | Q2 FY'20 | Q-o-Q (Change in %) | Q3 FY'19 | Y-o-Y (Change in %) |
| Production (MnT) | 13.46 | 12.9 | 4 | 4.46 | 4.5 | -1 | 4.38 | 2 |
| Deliveries (MnT) | 12.94 | 12.02 | 8 | 4.84 | 4.13 | 17 | 3.89 | 24 |
Quantity in MnT
Source: Company Report, SteelMint Research
