Domestic steel major Tata Steel India achieved its highest ever annual crude steel production of around 19.9 million tons, with a growth of 4 per cent year-on-year by debottlenecking across sites and ramping up of Neelachal Ispat Nigam.
The deliveries also increased 3 per cent YoY despite volatile operating environment during the financial year with the company surpassing its previous best recorded in FY22.
Further, domestic deliveries grew around 10 per cent YoY on the back of the company’s robust marketing network and agile business model, stated a release by the company.
Meanwhile, the fourth quarter of FY23 saw crude steel production increasing 3 per cent QoQ at around 5.15 million tons while the deliveries grew by 9 per cent QoQ to 5.15 million tons — the highest-ever quarterly deliveries.
In terms of segments as well, FY23 saw record domestic deliveries in automotive & special products (2.7 million tons), branded products & retail (5.9 million tons) and industrial products & projects (7.2 million tons).
While branded products & retail segment deliveries were driven by record quarterly and annual sales across established retail and MSME (micro, small & medium enterprises) brands like Tata Tiscon, Tata Kosh, Tata Astrum and Tata Steelium, the industrial products & projects segment sales were driven by sustained increase in sale of value-added products to key segments like oil & gas and railways among others.
Revenues from Tata Steel Aashiyana, an e-commerce platform for individual home builders grew around 18 per cent YoY to Rs 1,730 crore in FY23.
Neelachal Ispat, which began operations within three months of completion of acquisition, has steadily ramped up during the last two quarters and currently the run rate of crude steel plus pig iron is around 1 million tons on an annualised basis. Tata Tiscon rebars are being made from NINL billets.
During FY23, Tata Steel Europe steel deliveries were pegged at around 8.1 million tons. In the fourth quarter of FY23, deliveries were higher by 7 per cent QoQ at 2.13 million tons on the back of improving demand environment.
However, product mix has been affected due to the ongoing upgradation at CM21 (Cold Rolling mill), stated the release while adding that the overall process of relining of BF6 at Tata Steel Netherlands has commenced in early April as planned.
Shares of Tata Steel are down around 22 per cent in the last one year and have stayed almost flat in the last six months. Meanwhile, the Sensex is down less than 1 per cent in the last one year and is, in fact, up around 2.5 per cent in the last six months.
