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

According to Mining News Pro -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-