Tata Steel 2QFY24: India’s production up 4% YoY, Europe faces YoY dip
In the recently released 2QFY24 figures, Tata Steel India’s crude steel production has been reported at 4.99 million tons. This shows a commendable stability on a QoQ basis and an impressive growth of 4% on a YoY basis. For the first half of the fiscal year (1HFY24), Tata Steel India has observed a 3% YoY growth in its crude steel production, reaching 10.01 million tons. Notably, these figures encompass both Tata Steel Standalone and Tata Steel Long Products.
When it comes to delivery volumes, Tata Steel India has put forth a total of 4.82 million tons, which mirrors figures from the previous quarter. Yet, when looked at from a YoY perspective, the company’s total deliveries have surged by 7%. This upsurge is attributed primarily to an uptick in domestic deliveries. However, there’s a notable 52% YoY dip in exports, which now stand at 0.45 million tons.
Breaking down the domestic deliveries further, the Automotive & Special Products’ segment witnessed a rise by approximately 7% QoQ and YoY. This uptrend can be linked to the record sales in 2Q and approvals received from automotive OEMs for the cold rolled steel from Tata Steel’s new Cold Rolling mill at Kalinganagar. The ‘Branded Products & Retail’ segment, too, experienced a positive trajectory with a 3% QoQ and 6% YoY growth, attributed to the robust 2Q sales of their renowned brands like Tata Tiscon, Tata Steelium, and Tata Astrum. The revenue for Tata Steel Aashiyana, their e-commerce platform, soared by 73% QoQ, registering Rs. 628 crores in 2QFY24, courtesy of their unparalleled 2Q sales.
On the European front, Tata Steel Europe’s liquid steel production for the quarter is pegged at 1.99 million tons. This marks an 11% growth QoQ, but there’s a YoY dip. The YoY decline is attributed to the ongoing relining activities at one of their blast furnaces in the Netherlands. The total deliveries for Europe have been slightly muted, tallying at 1.79 million tons due to subdued demand dynamics.
To conclude, Tata Steel’s 2QFY24 figures reflect robust growth in certain sectors, primarily in the Indian segment. With milestones achieved in various product segments and their strategic investments, Tata Steel continues to be an industry leader in the steel sector.