How does Tata Steel`s Overseas Units Performed in Q2 FY19?
Mining News Pro - Indian steel major, Tata Steel has released its provisional crude steel and sales numbers and while the company`s India performance has improved, its Europe and South East Asia operations have recorded a drop y-o-y basis in their crude steel and sales output in Q2 FY19.
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According to Mining News Pro -Tata Steel Europe reported lower production of 2.46 MnT and sales of 2.25 MnT in the Q2 FY19 as compared to 2.60 MnT each in Q2 FY18. As per the release, the production of European operations in Q2 FY19 was impacted by shutdowns for ongoing upgradation program, annual maintenances in seasonally weaker quarter and two unplanned outages. The deliveries were lower due to lower production; further impacted by seasonality. In Q1 FY19, Tata Steel Europe`s crude steel was recorded at 2.81 MnT and sales were at 2.43 MnT.

Tata Steel South-East Asia operations also reported lower production of 0.55 MnT and sales of 0.65 MnT in Q2 FY19. The production improved on a quarter on quarter basis but was lower on a yearly basis at both Tata Steel Thailand and NatSteel.

NatSteel production was impacted by annual maintenance, other production related issues. Tata Steel Thailand production was lower in-line with weak demand in Thailand, the release said.

Sales of Tata Steel’s recently acquired company, Bhushan Steel saw an increase 34% in Q2FY19 to 1.14 MnT on Q-o-Q basis over 0.85 MnT in Q1FY19, led by the improved marketing strategy that helped in inventory reduction.

Tata Steel`s crude steel production of India operations has recorded a growth of 2.18% at 3.20 MnT Y-o-Y basis whereas sales have increased by 5.19% at 3.24 MnT against corresponding quarter of the previous fiscal year 2018. In Q2 FY18, company’s crude steel output stood at 3.20 MnT whereas sales were booked at 3.08 MnT.

If we compare Q2 FY19 results against the previous quarter, Tata Steel’s crude steel output was 3.17 MnT and sales were at 2.97 MnT. Tata Steel’s sales surged by 7% Q-o-Q basis from 2.97 MnT to 3.24 MnT due to better plant availability and higher sales from automotive sector. According to the company’s official statement, organisation’s automotive and special products sales grew by 17% y-o-y basis to 552 kilo-tonnes in Q2 FY19, mainly driven by higher demand from the auto sector.

In the first half of 2018 (H1 CY19), company`s crude steel production improved to 6.44 MnT and sales to 6.14 MnT against 6.15 MnT and 5.83 MnT respectively in the corresponding period last year.

Tata Steel`s operation-wise performance

Q2 FY18

Q1 FY19

Q2 FY19

Tata Steel Operations

Crude steel

Sales

Crude steel

Sales

Crude steel

Sales

India

3.20

3.08

3.17

2.97

3.27

3.24

Europe

2.60

2.60

2.81

2.43

2.46

2.25

South-East Asia

0.61

0.67

0.53

0.60

0.55

0.65

Quantity in MnT
Source: Company data

 


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