Tata Steel: 2QFY21 Key Production and delivery volumes (Provisional) Tata Steel achieves the highest ever quarterly deliveries of 5.05mt in India

During 2QFY21, global economic activity has started to recover with phased relaxations in lockdown measures, however, the pace of improvement has been varying across the geographies. Tata Steel continues to closely monitor the situation and take appropriate actions in line with the directions issued by the regulatory authorities keeping in view the health and safety of its employees and the community, and the interests of its customers and other stakeholders. We also continue to stay focused on aggressively managing costs and cashflows.

In India, in 2QFY21, overall apparent steel consumption was down by 7.5%YoY while crude steel production was down by 1.9%YoY. In this environment, Tata Steel India ramped up its steelmaking and downstream operations back to pre-Covid level, with all major sites operating at around full capacity utilization. During the quarter, we increased our crude steel production by 54%QoQ and 2%YoY to 4.59mn tons. We leveraged our robust marketing network and strong customer relationships to reach our highest ever quarterly deliveries of 5.05mn tons which translates to 72%QoQ and 22%YoY growth. We reduced exports to 24% of overall deliveries and sharply ramped up domestic deliveries to 3.86 mn tons which translates to an increase of 164%QoQ and 10%YoY. The growth in domestic deliveries was broad based with YoY growth across all key business verticals:

• ‘Automotive & Special Products’ segment deliveries grew 10%YoY with pick-up in sector demand especially in 2W and PV segment; we also gained Share of Business in the new PV and LCV launches.
• ‘Branded Products & Retail’ segment deliveries grew by 5%YoY with deliveries to B2ECA sector growing by 9%YoY; Tata Shaktee achieved a delivery volume growth of 22%YoY with robust rural demand.
• ‘Industrial Products & Projects’ segment deliveries grew by 13%YoY. We achieved a 31%YoY growth in value added product deliveries within the segment as we continued to focus on product mix enrichment by catering to discerning customers in segments such as Oil & Gas, Lifting and Excavation and Precision Tubes.

In Europe, macroeconomic and steel demand recovery is more gradual. Tata Steel Europe’s 2QFY21 sales volume increased by 14%QoQ to 2.26mn tons; Steel production was stable on QoQ basis.

About Tata Steel

Tata Steel group is among the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum. It is one of the world's most geographically-diversified steel producers, with operations and commercial presence across the world. The group (excluding SEA operations) recorded a consolidated turnover of US $19.7 billion in the financial year ending March 31, 2020.

A Great Place to Work-Certified^TM organisation, Tata Steel Ltd., together with its subsidiaries, associates and joint ventures, is spread across five continents with an employee base of over 65,000.

Tata Steel was recognized as DJSI steel sector leader in 2018 and has ranked fourth in the steel sector in 2019. Besides being a member of the worldsteel’s Climate Action Programme, Tata Steel has won several awards and recognitions including the World Economic Forum’s Global Lighthouse recognition for its Kalinganagar Plant - a first in India, and Prime Minister’s Trophy for the best performing integrated steel plant for 2016-17. The Company, ranked as India’s most valuable Metals & Mining brand by Brand Finance, received the ‘Honourable Mention’ at the National CSR Awards 2019, Steel Sustainability Champion 2019 by worldsteel, CII Greenco Star Performer Award 2019, ‘Most Ethical Company’ award 2020 from Ethisphere Institute, and Best Risk Management Framework & Systems Award (2020) by CNBC TV-18, among several others.

To know more, visit www.tatasteel.com  

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Disclaimer:

Statements in this press release describing the Company’s performance may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred or implied. Important factors that could make a difference to the Company’s operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in or due to the environment, Government regulations, laws, statutes, judicial pronouncements and/or other incidental factors.

For media enquiries contact:

Kulvin Suri

Tel: +91 22 6665 0581/ +91 92310 52397

E-mail: kulvinsuri@tatasteel.com

Rob Simpson

Tel: +44 207 717 4404/ +44 7990 786 531

E-mail: rob.simpson@tatasteeleurope.com