Tata Steel reports 2% drop in sales amid weak demand in Q2

Tata Steel reported that its sales in the September quarter were down two per cent at 4.82 million tonnes logged in the same period last year, on the back of weak demand.

Similarly, sales in Europe and Thailand dropped four per cent to 1.79 mt (1.87 mt) and 0.28 mt (0.30 mt) as the global demand slipped.

However, production volume in India increased to 4.99 mt (4.80 mt), while Europe and Thailand reported a decline at 1.99 mt (2.40 mt) and 0.28 mt (0.30 mt). The drop in output in Europe was largely due to ongoing relining at one of the blast furnaces in the Netherlands.

On a half-yearly basis, Tata Steel India sales were higher by 7 per cent to 9.62 mt (8.98 mt) on a YoY basis, driven by a rise in domestic deliveries. Exports moderated by 52 per cent YoY to 0.45 mt.

Automotive & Special Products segment sales increased by around 7 per cent YoY, driven by best-ever September quarter sales. Tata Steel has started receiving approvals from automotive OEMs for cold-rolled steel from the recently commissioned Cold Rolling mill at Kalinganagar.

Branded Products and retail segment sales increased by about 6 per cent YoY because of better demand for Tata Tiscon, Tata Steelium and Tata Astrum.

Revenues from Tata Steel Aashiyana, an e-commerce platform for Individual Home Builders, stood at Rs 628 crore due to best-ever sales in the September quarter.

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