Tata Steel jumps 2% on strong quarterly sales in India

Tata Steel rose over 2 per cent on Monday after the steel major reported 7.82 per cent rise in domestic production at 3.17 million tonne and 8 per cent increase in sales at 2.97 mt in the June quarter. The stock gained as much as 2.2 per cent to Rs 565.80 on the BSE in intraday trade, but settled at Rs 556.85, up 0.5 per cent. The stock has corrected over 20 per cent so far in 2018. 

Tata Steel's production stood at 2.94 mt and sales at 2.75 mt in the same period last year, and at 3.07 mt and 3.03, respectively, in the March quarter this year.

"Q1 FY19 production is higher than Q4 FY18 mainly due to better plant availability at Kalinganagar," the company said while announcing the provisional production and sales figures for the June quarter.

Automotive and special products has achieved highest ever quarterly sales of 557 kilo tonne (kt) in Q1 FY19 due to stronger demand and new product approvals, a release said.

Branded products and retail business has achieved highest ever Q1 sales of 975 kt, registering a year-on-year growth of 12 per cent, compared with 873 kt in Q1 FY18.

Overall engineering segments have also registered 70 per cent growth with 97 kt sales in Q1 FY19, against 57 kt sales in Q1 FY18, it said.

Tata Steel Europe, however, reported marginal jump in production at 2.81 mt in the June quarter, against 2.79 mt in the year-ago period, due to improved plant availability.

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Sales also increased from 2.40 mt in Q1 FY18 to 2.43 mt in Q1 FY19, while deliveries were marginally better in spite of the action under Section 232 by the US which created some uncertainty, the company said.

Its South East Asia unit reported production of 0.53 mt in Q1 FY19, against 0.50 mt in the same period last year, while the sales stood flat at 0.60 mt.

The company attributed lower production to planned annual shutdowns at Tata Steel Thailand.