Continue leverage to sustain growth: Tata Steel MD

Jamshedpur, April 6: TV Narendran, CEO & MD, Tata Steel said, “Tata Steel India reported a record-breaking operational performance in FY23 despite a challenging environment. Our achievement of highest-ever annual production and deliveries, surpassing the previous records set in FY22, is a testament to our resilience and agility.”

He further said, “Our strong marketing network and agile business model enabled us to grow across segments. We are pleased to see the steady ramp-up of Neelachal Ispat Nigam Limited (NINL) during the last two quarters. We will continue to leverage our strengths to sustain this momentum and drive growth.”

Tata Steel touches highest-ever production at 19.9 million tons in FY23

Steel major Tata Steel India achieved highest ever annual crude steel production of 19.9 million tons, with a growth of 4% YoY by debottlenecking across sites and ramp up of Neelachal Ispat Nigam Limited. In 4QFY23, crude steel production was up 3% QoQ and stood at around 5.15 million tons.

Tata Steel India deliveries also increased by 3% YoY despite volatile operating environment during the financial year and surpassed the previous best recorded in FY22.

Domestic deliveries also grew by 10% YoY leveraging robust marketing network and agile business model. In 4QFY23, deliveries grew by 9% QoQ to 5.15 million tons and were the highest ever quarterly deliveries, said a press communique issued by the company.

It stated ‘Automotive & Special Products’ segment deliveries increased by 5% YoY in FY23 to be at 2.7 million tons, surpassing the previous best recorded in FY22.

In 4QFY23, deliveries were up 8% QoQ despite the 4% QoQ drop in auto OEM production. o ‘Branded Products & Retail’ segment deliveries increased by 11% in FY23 to be at 5.9 million tons, surpassing the previous best recorded in FY20.

This was driven by record quarterly and annual sales across well-established retail and MSME (Micro, Small & Medium Enterprises) brands like Tata Tiscon, Tata Kosh, Tata Astrum and Tata Steelium.

In 4QFY23, deliveries were up by 16% QoQ and led to best ever quarterly sales. ‘Industrial Products & Projects’ segment deliveries increased by 14% in FY23 to be at 7.2 million tons, surpassing the previous best recorded in FY22. In 4QFY23, deliveries were up 11% QoQ and were best ever quarterly sales driven by sustained increase in sale of value-added products to key segments like Oil & Gas, Railways etc.

Revenues from Tata Steel Aashiyana, an e-commerce platform for Individual Home builders, grew by around 18% YoY to Rs. 1,730 crores in FY23.

Neelachal Ispat Nigam Limited (NINL) began operations within 3 months of completion of acquisition and has steadily ramped up during the last two quarters. Presently, the run rate of crude steel plus pig iron is around 1 million tons on annualised basis. Presently Tata Tiscon rebars are being made from NINL billets.

During FY23, Tata Steel Europe steel deliveries were 8.1 million tons. In 4QFY23, deliveries were higher by 7% QoQ to 2.13 million tons on improving demand environment.

However, product mix has been affected due to the ongoing upgradation at CM21 (Cold Rolling mill). As planned, the overall process of relining of BF6 at Tata Steel Netherlands has commenced in early April.