Tata Steel production rises 6% YoY to 5.68 MT; stock trades near its 52-week low price
For the December quarter, the company's India crude steel production stood at 5.68 million tons.
Shares of Tata Steel traded with a minor cut in Wednesday's session (January 8) after the steel major released its production and delivery volumes figures for the December quarter of the FY2025. At around 10:08 am, the stock traded down by 0.2 per cent or Rs 0.25 at Rs 133.10 after opening at Rs 133.7 apiece on the BSE.
During the review quarter, the company's crude steel production in the domestic markets stood at 5.68 million tons, rising 8 per cent quarter-on-quarter (QoQ) and 6 per cent year-on-year (YoY), aided by the commissioning of the 5 MTPA blast furnace at Kalinganagar in September.
The new blast furnace is presently operating at around 8,000 tpd and the ramp up to rated capacity is underway, said the company's press release. For 9MFY25, production rose 5 per cent YoY to 16.2 million tons
India deliveries also registered an increase, up 8 per cent YoY, at 5.29 million tons as against 4.88 million tons in the same period last year.
"Tata Steel India deliveries were the ‘best ever 3Q’ sales at 5.29 million tons. Deliveries were up 4% QoQ and 8% YoY, aided by steady sales in domestic market and strategic presence in exports," it added.
The company's UK production was nil during the December quarter as against 0.72 MT in the same quarter of the year-ago period. Deliveries at the UK business also dropped 12.5 per cent to 0.56 MT as against 0.64 MT in Q3FY24.
Following closure of the blast furnaces at the end of 2QFY25, TSUK has successfully reconfigured its supply chain to continue servicing customers via downstream processing of purchased substrate.
Tata Steel Netherlands liquid steel production for the quarter stood at 1.76 million tons and deliveries were 1.53 million tons. Deliveries include volumes to UK operations of around 0.12 million tons. For 9MFY25, deliveries were up 16% YoY, primarily due to improved production, noted the release.
Brokerage view
Analysts at SBI Securities are positive on the stock in the short term.
Tata Steel share price performance
As against Nifty's 1-year return of over 9 per cent, Tata Steel stock in the last one year has delivered return to the tune of -0.2 per cent. The stock is trading near its 52-week low price of Rs 128.2 per share.
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10:47 AM IST