Companies

Tata Steel Q3 sales fall 4% due to lower inventory

Mumbai | Updated on January 08, 2021

Tata Steel reported that its sales were down 4 per cent in the December quarter at 4.66 million tonne (mt) due to lower inventory.

However, the company’s crude steel production rose 3 per cent at 4.60 mt (4.47 mt). While domestic sales increased 4 per cent at 4.16 mt, exports shrank below 11 per cent of overall deliveries, said the company.

Tata Steel’s automotive and special products segment’s deliveries grew 48 per cent quarter-on-quarter on the back of improvement in overall demand, increased share of business from existing customers and new product approvals.

Gross revenue generated through Aashiyana, the online platform for individual home-builders, surged to ₹222 crore in the December quarter, registering a growth of 134 per cent YoY.

Despite planned maintenance shutdowns, the company ramped up production at Tata Steel Europe by 4 per cent with an aim to replenish inventory ahead of improving the market condition and seasonally better March quarter.

However, steel sales volume in Europe declined 10 per cent due to lower opening inventories and Covid impact at the beginning of the quarter.

“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 interests of our stakeholders,” said the company. It remains focussed on aggressively managing costs and cashflows while pursuing deleveraging, it added.

Published on January 08, 2021

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