3QFY21 Production and delivery volumes (Provisional)

Tata Steel reports strong quarterly domestic deliveries, exports shrink to 11% of overall deliveries

Notes: 1. Production Numbers: India - Crude Steel Production; Europe - Liquid Steel Production 2.  . Figures for Tata Steel India includes Tata Steel Standalone, Tata Steel BSL and Tata Steel Long Products (from April 09, 2019) without eliminating inter-company transactions.

• Tata Steel India’s crude steel production in 3QFY21 remained strong at 4.60 mn tons, registering a 3%YoY growth.

• Tata Steel India saw strong sales momentum in 3QFY21, however, sales volumes were constrained by lower opening inventory post very strong sales in 2QFY21. As a result, deliveries were 4.66 mn tons in 3QFY21, lower by 8%QoQ and 4%YoY. Domestic deliveries sharply ramped up to 4.16 mn tons which translates to an increase of 8%QoQ and 4%YoY. Exports shrank below 11% of overall deliveries. Key segment highlights of our domestic deliveries are: 
  • ‘Automotive & Special Products’ segment deliveries grew 48%QoQ on the back of improvement in overall demand, increased share of business from existing customers and new product approvals.
  • ‘Branded Products & Retail’ segment deliveries grew by 5%QoQ with B2C brands Tata Shaktee and Tata Tiscon achieving best-ever quarterly sales. We launched a new B2ECA brand “Galvanova” to serve the need of appliances, false ceiling and solar segments.
  • ‘Industrial Products & Projects’ segment deliveries were marginally lower. However, we achieved a 47%QoQ delivery volume growth in high-end segments as we continued to focus on product mix enrichment by catering in sub-segments such as Oil & Gas, Lifting & Excavation and Pre-Engineered Buildings.
  • Gross revenue generated through ‘Aashiyana’, the online platform for Individual Home-Builders, surged to Rs.222 crores in 3QFY21, registering a growth of 40%QoQ and 134%YoY.

• During the quarter, despite planned maintenance shutdowns, we were able to ramp-up steel production at Tata Steel Europe by 22%QoQ and 4%YoY. This was aimed at replenishing inventory ahead of improving market condition and seasonally better 4QFY21. While 3QFY21 steel sales volume declined 7%QoQ and 10%YoY due to lower opening inventories and COVID-19 impact at beginning of the quarter, the mix of deliveries saw further improvements in the Automotive and Engineering sectors.

• We continue to closely monitor the pandemic situation and take appropriate actions in line with the directions issued by the regulatory authorities keeping in view the health and safety of our employees and the community, and the interests of our customers and other stakeholders.

• We also remain focused on aggressively managing costs and cashflows while pursuing deleveraging.

About Tata Steel

Tata Steel group is among the top global steel companies with an annual crude steel capacity of 33 million tonnes per annum (MnTPA). 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 $22.67 billion in the financial year ending March 31, 2019. In 2018, Tata Steel acquired Bhushan Steel Ltd (now renamed as Tata Steel BSL Ltd).

A Great Place to Work-Certified 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 retained the ‘Global Steel Industry Leader’ position in the DJSI 2018. The Company has been recognised as the Climate Disclosure Leader in ‘Steel category’ by CDP (2017). Besides being a member of the World Steel Climate Action Programme, Tata Steel has won several awards including the Lighthouse recognition for its Kalinganagar Plant – a first in India, Prime Minister’s Trophy for the best performing integrated steel plant for 2016-17, ‘GreenPro’ certification for products (Tata Pravesh Steel Doors, Tata Structura, Tata Pipes) by CII, Authorized Economic Operator  (AEO) status (Tier 2) by the Directorate of International Customs (Ministry of Finance, Govt. of India), ‘Corporate Strategy Award’ by Mint (2018), Golden Peacock Award for Risk Management (2018) and Best Risk Management Framework & Systems Award (2019) by CNBC TV18. The Company also received the ‘Most Ethical Company’ award from Ethisphere Institute for the eight time (2019), Steel Sustainability Champion (2018) by the World Steel Association, Dun & Bradstreet Corporate Awards (2019), Golden Peacock HR Excellence Award by Institute of Directors (2018), ‘Best Companies To Work For’ recognition by Business Today, 'Asia's Best Integrated Report' award by the Asia Sustainability Reporting Awards (2017), among several others.

Last year, the Company launched a corporate brand campaign #WeAlsoMakeTomorrow..

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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

E-mail: kulvinsuri@tatasteel.com

Rob Simpson

E-mail: rob.simpson@tatasteeleurope.com