Tata Steel Investor Conference Call Highlights- Q2 FY18 Results

India's major steel giant Tata Steel has announced Q2FY18 results yesterday (i.e on 30 Oct'17). The company officials remained optimistic about domestic demand picking up in H2 FY18.The investor conference call highlights are mentioned below.

1. Company's EBITDA for its India operations moved up by 17% in Q-o-Q basis-In India Tata Steel EBITDA move up by 17% on quarterly basis.In Q2FY18 company reports EBITDA at INR 3,408 Cr as compared to INR 2, 922 Cr in previous quarter. However in Q2 FY17, it stood at INR 1,991 Cr.

2.Company's steel production and deliveries shows upward trend - Tata Steel, India, produced 3.03 MnT steel in Q2 FY18 compared to 2.95 MnT in the previous quarter, up by 2% . Deliveries have also increased by 12% to 3.08 MnT in Q2 FY18.

3. Optimistic domestic demand in H2 FY18 - Tata Steel company officials remained optimistic in terms of demand forecast for H2 FY18. Global steel prices in international markets seem to stabilize.

4 .Tata Steel, India segment sales highlights- Automotive sector sales grew by 14% on Q-o-Q basis owing to development of new grades and new vehicle models in Q2FY18.Meanwhile sales in branded products, retail & solutions increases by 16% on quarterly basis due to restocking, improved government spending and festive season.And sales volume of Industrial products and projects grew by 18% Q-o-Q basis.

5.Indian Steel demand remained subdued in Q2 FY18-Indian flat steel demand showed the growth of 4% on Q-o-Q basis. Factors like GST implementation coupled with monsoons affected the steel demand in India.Construction was weak due to seasonal factors and impact of RERA (Real Estate Regulation Act) implementation in various states. Also demand from consumer durable sectors remained weak.However passenger vehicles reported the rise of 11% to 1.03 Million in Q2FY18 against 0.93 millions in previous quarter.And commercial vehicles witness the surge of 31% on quarterly basis to 0.21 millions

6.Indian steel Imports Jumped to 2.6 MnT in Q2FY18-Indian steel imports jumped to 2.6 MnT in Q2FY18 ,surged by whopping 53% from 1.7 MnT in Q1FY18.However on yearly basis India's imports boost up by 44% in Q2FY18 against 1.8 MnT in similiar quarter of previous year.

7.Kalinganagar plant is close to full ramp up- The company aims at doubling steel capacity in next 5 years.

8. Tata steel export volumes surged by 12% in Q2FY18- Tata Steel export volumes showed the rise of 12% to 0.31 MnT in Q2 FY 18 comparison to 0.27 Mnt in last quarter.

9. India to remain net steel exporter in FY18 - Indian steel exports remain marginally higher than imports driven by elevated international prices. India will turn out to be net exporter of steel since Chinese export volumes have started declining which will be the good opportunity for India to cater in SE Asian markets.

10.Tata Steel signed MoU in this quarter-Company has achieved a major milestone by signing a MoU for 50:50 joint venture with German steelmaker ThyssenKrupp in this quarter.The MoU is signed with the intention to join forces and form Europe's second-largest steel producer, which will be named ThyssenKrupp Tata Steel.