Monday, June 24, 2024

Tata Steel Q4 Provisional Update: India production volume up 5.1% at 5.15 mt Vs 4.90 mt (YoY)

Tata Steel announced its provisional 4QFY2023 and FY2023 production and delivery volumes. Tata Steel India recorded the highest-ever annual crude steel output of 19.9 million tonnes, with a rise of 4% YoY, by debottling bottlenecks across sites and ramping up Neelachal Ispat Nigam Ltd. Production of crude steel rose by 3% QoQ and reached 5.15 million tonnes in 4QFY23.

According to provisional statistics released by the steelmaker on April 5, Tata Steel’s output volume in India grew by 5.1 percent YoY to 5.15 million tonnes in the fourth quarter of the fiscal year 2022–23. Production on the Indian market totalled 4.90 metric tonnes at the same time last year.

Notwithstanding a challenging operating environment during the fiscal year, Tata Steel India’s deliveries rose by 3% YoY and surpassing the previous high mark set in FY22. Using its strong marketing network and adaptable business approach, domestic deliveries climbed by about 10% YoY. Deliveries jumped by 9% QoQ to 5.15 million tonnes in the fourth quarter of FY23, which set a record for quarterly deliveries.

Deliveries for the Automotive sector & Special Products market climbed by 5% YoY to 2.7 million tonnes in FY23, breaking the previous high set in FY22. Despite a 4% QoQ decline in vehicle OEM production in 4QFY23, deliveries climbed by 8% QoQ. According to Tata Steel, deliveries for the “Branded Products & Retail” category climbed by 11% in FY23 to 5.9 million tonnes, breaking the previous record set in FY20. Record quarterly and yearly sales for well-known retail and MSME (Micro, Small & Medium Enterprises) brands including Tata Tiscon, Tata Kosh, Tata Astrum, and Tata Steelium were the main contributors to this. Deliveries climbed by 16% QoQ in 4QFY23, resulting in the highest quarterly sales ever.

The company said that deliveries for its “Industrial Products & Projects” division climbed by 14% to 7.2 million tonnes in FY23, breaking the previous record set in FY22. Deliveries in 4QFY23 climbed by 11% QoQ and represented the highest quarterly sales ever, driven by a steady rise in the sale of value-added products to key market including Oil & Gas and Railways, among others.

The firm said that in FY23, revenue from Tata Steel Aashiyana, an online marketplace for individual home builders, climbed by almost 18% YoY to Rs. 1,730 crores. Within three months of the acquisition’s completion, Neelachal Ispat Nigam Ltd (NINL) started operating and has gradually scaled up over the past two quarters. Today, on an annualised basis, the run rate of crude steel plus pig iron is roughly 1 million tonnes. 

NINL billets are used to make Tata Tiscon rebars. Tata Steel Europe delivered 8.1 million tonnes of steel during FY23. Deliveries climbed by 7% QoQ to 2.13 million tonnes in the fourth quarter of FY23 due to an improving market situation. Nonetheless, the current CM21 modernization has had an impact on the product mix (Cold Rolling mill). As anticipated, Tata Steel Netherlands started the whole relining process for BF6 in the first week of April.

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