Tata Steel reports strong 3QFY24 production and delivery, marking best quarter in India
Tata Steel, one of the global leaders in the steel industry, has recently released its production and delivery volumes for the third quarter of fiscal year 2024 (3QFY24). These figures, which are still provisional, provide critical insights into the company’s performance across its various international operations.
In 3QFY24, Tata Steel India continued its upward trajectory, achieving a crude steel production of 5.32 million tons. This represents a 6% increase both quarter-over-quarter (QoQ) and year-over-year (YoY). Notably, for the 9-month period of FY24 (9MFY24), the production increased by 4% YoY. The deliveries in India were also noteworthy, standing at 4.88 million tons, marking it as the ‘best ever 3Q’ in sales. This increase was primarily fueled by a rise in domestic deliveries, which saw a 3% QoQ and a remarkable 10% YoY growth, reflecting the continued strength in India’s steel demand.
Tata Steel’s Indian Operations Outshine International Performance in 3QFY24
The domestic deliveries were segmented into various categories, with the ‘Automotive & Special Products’ segment seeing an 8% QoQ and 22% YoY increase, driven by record 3Q sales. ‘Branded Products & Retail’ deliveries remained stable QoQ but rose by 11% YoY. The ‘Industrial Products & Projects’ segment also saw a growth of about 5% QoQ and 6% YoY. Tata Steel Aashiyana, the company’s e-commerce platform, reported revenues of Rs. 572 crores in 3QFY24, a 38% increase YoY.
In contrast, Tata Steel’s international operations in the Netherlands and the UK faced mixed results. Tata Steel Netherlands reported a liquid steel production of 1.17 million tons and deliveries of 1.29 million tons, marking a 5% QoQ increase. However, both production and deliveries showed a decline on a YoY basis due to the relining of one of the blast furnaces. Tata Steel UK’s liquid steel production stood at 0.73 million tons, marginally lower QoQ, and deliveries fell to 0.63 million tons due to subdued demand.
Overall, while Tata Steel’s Indian operations shone with their best-ever 3Q sales, the international segments navigated through more challenging conditions. The company’s adaptability in diverse market conditions underscores its commitment to maintaining a strong position in the global steel industry.