Tata Steel Q3 production up 28%
10 January 2017
Tata SteelBSE 1.49 % has posted a 13% rise in sales in April-December 2016 to 7.7 million tonne (mt) up from 6.8 mt in the same period in 2015 led by a surge in automotive steels and branded products in its portfolio and contribution from its new greenfield steel plant at Kalinganagar in Odisha.
In particular, the company posted a 27% increase in Q3FY17 sales to 2.9 mt compared to 2.3 mt in Q3 FY16. On a sequential basis, Tata Steel saw sales jump 14% in the third quarter this year over Q2FY17 due to ramp up in capacity at Kalinganagar. The company’s quarterly sales performance was boosted by a 20% increase (year on year) in auto grade steel, a 13% rise in branded products sales and a 37% jump in value added products. More significantly, scaling up of sales in new segments registered a five-fold growth on a year on year basis.
On the production front, Tata Steel reported a 15.4% rise in saleable steel output to 8.2 mt in April-December 2016 over 7.1 mt in April-December 2015. During Q3FY17, saleable steel production went up to 3.1 mt compared to 2.5 mt in Q3FY16, while hot metal output jumped to 9.5 mt in April-December 2016, up 20% over 7.9 mt in the same period of 2015. In particular, the Kalinganagar plant crossed 1.5 mt of hot metal and one million tonne of hot rolled coil production since it was commissioned in in May 2016.
Tata Steel's Jamshedpur plant reported its best ever hot metal production of 2.75 mt in Q3FY17, beating its previous best of 2.69 mt in Q3FY16. The Cold Rolling Mill also achieved its best ever Q3 production of 0.48 mt beating its previous best of 0.45 mt in Q3FY16, while the Hot Strip Mill at Jamshedpur produced 1.07 million tonne sin Q3FY17 against its previous best of 1.01 mt in Q3Fy16.