Tata Steel records 4% growth in Q3 steel production

10 Jan 2022 , 09:34 AM

Delivery volumes of Tata Steel India fell by 5.2% YoY to 4.41 MT in the third quarter.

During Q3 FY22, crude steel production was up 1.5% QoQ while overall deliveries were lower by 4% QoQ as an increase in domestic deliveries was offset by lower exports.

Tata Steel Europe recorded crude steel production of 2.56 MT (down 1.2% YoY) and delivery volumes of 2.15 MT (up 1.9% YoY) in Q3 FY22. During the quarter, crude steel production and deliveries remained broadly similar on QoQ basis amidst supply chain issues in steel-consuming sectors including chip shortages faced by the automotive sector.

Tata Steel Southeast Asias Steel production at 0.32 MT, was higher by 16% on QoQ basis but flat on YoY basis in Q3 FY22. Deliveries were broadly similar YoY and QoQ as improvements in the domestic market were offset by lower exports.

Separately, Tata Steel said that the companys equity stake in Medica TS Hospital (MTSHPL) has increased from 26% to 51% on 7 January 2022.

The stake increase has occurred due to the conversion of 5,102 optionally convertible debentures (OCD) of Rs 1,000 each held in MTSHPL into 5,10,200 equity shares of face value Rs 10 each, ranking pari passu with the existing equity shares of MTSHPL, and 4,92,298 OCDs of Rs 1,000 each, held in MTSHPL, into 4,92,29,800 0.01% optionally convertible redeemable preference shares (OCRPS) of face value Rs 10 each.

Medica TS Hospital is a joint venture company between Tata Steel and Medica Hospitals. The company is operating and managing its 100-bed multi-speciality hospital established in Kalinganagar, Odisha, to provide health care facilities to the general public. The turnover of MTSHPL for the year ended 31 March 2021 was Rs 34.98 crore.

MTSHPL is an integral part of the Kalinganagar operations of the company in Odisha and services the employees and community in the area at large.

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum.

The company recorded a consolidated net profit of Rs 12,548 crore in Q2 FY22 as against a net profit of Rs 9,768 crore in Q1 FY22, registering a growth of 28.5% on QoQ basis. Total revenue from operations rose by 12.9% QoQ to Rs 60,283 crore during the quarter. The steel makers net profit and revenue have risen by 7.5 times and 54.8%, respectively, in Q2 FY22 as compared with Q2 FY21.

The scrip shed 0.34% to currently trade at Rs 1156.30 on the BSE.

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