Steady Tata Steel India Output in Q2 2024 Offsets European Decline, Focus on Domestic Deliveries Heightens
Tata Steel posts a stable 2QFY24 in India with slight increase in production and delivery volumes, while European arm faces challenges.
JAMSHEDPUR – Tata Steel India unveiled its provisional figures for the second quarter of Financial Year 2024, recording 4.99 million tons in crude steel production, marking a 4% YoY increase.
On a half-year basis, the Indian division witnessed a 3% YoY surge in crude steel production, reaching 10.01 million tons.
The company’s delivery volumes in India stood at 4.82 million tons, maintaining stability on a QoQ basis.
Despite the seasonal slowdown due to monsoons, the total deliveries showed a 7% increase YoY, propelled by a rise in domestic deliveries.
Exports, however, moderated by 52% YoY to 0.45 million tons.
Key domestic delivery highlights for the quarter included an approximate 7% QoQ and YoY surge in the ‘Automotive & Special Products’ segment.
This uptick was fueled by best ever 2Q sales and recent approvals from automotive OEMs for cold rolled steel from Tata Steel’s newly inaugurated Cold Rolling mill at Kalinganagar.
The ‘Branded Products & Retail’ segment saw deliveries rise by roughly 3% QoQ and 6% YoY, again marking the best ever second-quarter sales for renowned brands like Tata Tiscon, Tata Steelium, and Tata Astrum.
As for the ‘Industrial Products & Projects’ segment, deliveries remained stable QoQ but showed a 4% YoY increase, with value-added products registering their best quarterly sales.
Tata Steel Aashiyana, the company’s e-commerce platform for Individual Home Builders, recorded revenues of Rs. 628 crores in 2QFY24, up 73% QoQ due to impressive sales performance.
On the European front, Tata Steel Europe showed a QoQ production increase of 11%, totaling 1.99 million tons.
However, the production fell YoY, attributed to ongoing relining at a blast furnace in the Netherlands.
The European arm also witnessed subdued delivery figures of 1.79 million tons for the quarter, signaling weaker demand dynamics.
