India: Tata Steel's crude steel production, deliveries rise q-o-q in Q3FY'25

• Export volumes surge 104% q-o-q
  
  
• EBITDA increases by 14% q-o-q
  
  

Tata Steel, one of the leading steel manufacturing companies in India, reported a q-o-q rise in crude steel production and deliveries in Q3FY'25. The company spent INR 3,868 crore on capital expenditure (CAPEX) during the quarter and INR 12,450 crore over April-December 2024 (9MFY'25).

Project updates

• The newly commissioned 5-MTPA blast furnace at Kalinganagar is currently operating at 8,500 tonnes per day (tpd), with efforts to ramp up the rated capacity underway.
  
  
• The 0.9-MTPA Continuous Annealing Line (CAL), which is part of the 2.2-million tonnes per annum (MTPA) cold rolling mill (CRM) complex at Kalinganagar, was commissioned in December 2024 and has received facility approvals from some major automotive original equipment manufacturers (OEMs).
  
  
• The company has started receiving equipment on site for its 0.85-MTPA electric arc furnace in Ludhiana and is progressing with civil works. The project is advancing on schedule.
  
  
• Downstream (tubes, wires)

  A 100-KTPA structural tube mill has been commissioned.

  The set-up of the 42-KTPA low-relaxation pre-stressed concrete strands (LRPC) line is underway.
  
  

Production rises q-o-q: Tata Steel's crude steel production rose by 8% q-o-q to 5.69 million tonnes (mnt) in Q3FY'25. On a y-o-y basis, the same rose 6% as compared with 5.35 mnt in the corresponding period last year (CPLY).

Sales up q-o-q: The company's sales increased by 4% to 5.29 mnt in Q3FY'25 from 5.11 mnt in Q2FY'25. The volumes were driven by steady domestic deliveries and the company's strategic presence in the export market. Sales rose 8% y-o-y against 4.88 mnt in Q3FY'24.

Export volumes surged 104% q-o-q to 0.47 mnt in Q3FY'25 as compared with 0.23 mnt in the previous quarter.

EBITDA increases q-o-q: Tata Steel's EBITDA increased 14% to INR 7,820 crore in Q3FY'25 as compared with INR 6,889 crore in the preceding quarter. Meanwhile, on a y-o-y basis, the same dropped 6% as against INR 8,337 crore in the CPLY.

Material cost declined by INR 1,300/t due to a decline in coking coal consumption cost and an inventory build-up of 156,000 t during the quarter.

Net sales realisations (NSR) drop q-o-q: NSR dropped by INR 2,400/t during the quarter against the guidance of INR 2,000/t provided last quarter.

Note: All figures mentioned are for India (India includes Tata Steel Standalone and Neelachal Ispat Nigam Limited).