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Tata Steel India's Q3 sales up by 24.4% YoY but remains flat compared to last quarter

While the company’s maintained its sales in the auto segment during the quarter, its branded products & retail segment grew 23% QoQ while industrial products and projects grew 12% QoQ. According to provisional figures released by the company during Q3FY20, Tata Steel India’s production grew by 1.8% over Q3FY19 to 4.46 million tonne but remained flat on a QoQ basis.

ET Bureau|
Last Updated: Jan 10, 2020, 03.45 PM IST
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During Q3FY20, weakness in GDP growth and industrial output continued across major economies affecting steel demand.
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KOLKATA: Tata Steel India’s Q3FY20 sales volume increased by 24.4% over Q3FY19 to 4.84 million tonne (mt) while growing 17% QoQ with improved market sentiment. While the company’s maintained its sales in the auto segment during the quarter, its branded products & retail segment grew 23% QoQ while industrial products and projects grew 12% QoQ. According to provisional figures released by the company during Q3FY20, Tata Steel India’s production grew by 1.8% over Q3FY19 to 4.46 million tonne but remained flat on a QoQ basis.

The main reason for this was attributed to the weakness in the Indian economy with declining private consumption growth and low investment growth, an official statement released on Friday said. Domestic steel prices reached a low in October 2019 before improving from November onwards. Steel prices are expected to improve further with strong retail demand and ongoing restocking demand at the dealers’ ends, it added.

In Q3FY20, Tata Steel Europe’s Q3FY20 production which touched 2.5 mt grew 6.8% over Q3FY19 and sales volume which reached 2.31 mt during the quarter under review declined marginally over Q3FY19 though it remained flat on a QoQ basis. Tata Steel South East Asia operations registered lower production volume at 0.49 mt on QoQ basis due to continued sluggishness in Singapore and Thailand markets.

During Q3FY20, weakness in GDP growth and industrial output continued across major economies affecting steel demand. However, Chinese steel demand was buoyant as despite higher steel production, exports stabilized at around five million tonne a month.

Sharing its outlook, Tata Steel said: “Positive developments on the US–China trade talks along with a step-up in China’s policy easing is expected to provide support to global steel demand and steel prices. However escalating geo political tension pose a risk.” In Europe, the overall slowdown coupled with seasonal weakness kept steel spreads under pressure as declining steel prices offset the benefit of softness in raw material prices, the statement added.

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