Tata Steel Strengthened Operational Capabilities: Record Production in FY2024

Tata Steel Limited recently released its production and delivery volumes for the quarter (Q4 FY2024) and year (FY2024) ended March 31, 2024. The company stated in the exchange filing that Tata Steel India recorded the ever-annual crude steel production of ~20.8 million tons, with a growth of 4% YoY during FY2024. This was supported by debottlenecking across sites and achieving higher steel production at Neelachal Ispat Nigam Limited. While crude steel production was broadly stable and stood at around 5.38 million tons during Q4 FY2024.

With respect to deliveries, Tata Steel India recorded a YoY growth of 6% and outpaced the previous best recorded in FY2023. In addition, domestic deliveries witnessed a growth of 9% on a YoY basis, leveraging India’s steel demand growth and its agile business model. During Q4FY2024, deliveries rose by 11% on a QoQ basis and 5% on a YoY basis to 5.41 million tons, the highest-ever quarterly deliveries.

Segmental Deliveries

1. Automotive and Special Products Segment: During FY2024, the company experienced a growth of 8% in deliveries on a YoY basis to ~2.9 million tons, surpassing the previous best recorded in FY 2023. Volumes have been fueled by higher deliveries of hot-rolled and cold-rolled steel to automotive OEMs.
2. Branded Products & Retail Segment: Under this segment, the deliveries rose by 11% YoY in FY 2024 to ~6.5 million tons on the back of record annual sales of well-established retail brand Tata Tiscon, which surpassed 2 million tons.
3. Industrial Products & Projects Segment: The deliveries under this segment mounted up by 6% YoY in FY 2024 to ~7.7 million tons. Among sub-segments, engineering registered the best ever-annual sales led by pre-engineered buildings and railways, among others.

During FY 2024, the company recorded revenues from Tata Steel Aashiyana, an e-commerce platform for Individual Home Builders, to 2,240 crores, reflecting a YoY growth of 30%. This was backed by the best-ever Q3 and Q4 sales.

About Tata Steel Ltd

Tata Steel Limited is one of the world’s most geographically diversified steel producers, with operations and commercial presence across the world. On April 08, 2024, the shares of the company opened at ₹166.65 and touched the day high of ₹166.85 at 11:26 AM.

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