Tata Steel Long rises after Q3 cude steel production climbs 33% YoY

Tata Steel Long Products (TSLP) gained 1.62% to Rs 703.10 after the company said that its crude steel production jumped 33.33% to 228,000 tons in Q3 FY23 as against 171,000 tons posted in Q3 FY22.

On quarter on quarter (QoQ) basis, crude steel production surged 41.61% from 161,000 tons recorded in Q2 FY23.

The company's direct reduced iron (DRI) production stood at 183,000 tons in Q3 FY23, registering a decline of 1.08% year on year and 9.85% QoQ.

The firm's saleable steel sales volume grew 18.29% YoY and 23.57% QoQ to 194,000 tons in Q3 FY23. DRI sales volume stood at 139,000 tons in Q3 FY23 (up 11.2% YoY and down 9.15% QoQ)

During the quarter, crude steel production and deliveries were higher on QoQ and YoY basis. Volumes include that of Neelachal Ispat Nigam (NINL), which began operations within 3 months of completion of acquisition, said the company.

NINL crude steel production stood at approximately 54,000 tons and deliveries was at around 42,000 tons. NINL is presently undergoing ramp up to rated capacity of around 1 million tons. Tata Tiscon rebars are being made from NINL billets.

For 9M FY23, crude steel production was up 12% YoY while deliveries were up 6% YoY. In 9M FY23, DRI production and sales volumes were broadly similar. During the quarter, DRI production and sales were lower on QoQ basis as one of the two units started operating as a conversion unit for Tata Steel from end November.

Tata Steel Long Products has presence across the entire value chain of steel manufacturing from mining and processing iron ore to producing and distributing steel based long products. The company also has sponge iron manufacturing facility and captive power plants generating power from waste heat and thermal coal.

The company reported a net loss of Rs 333.36 crore in Q2 FY23 as against a net profit of Rs 145.50 crore in Q2 FY22. Net sales rose 16.9% year on year to Rs 1,913 .94 crore in Q2 FY23.

Powered by Capital Market - Live News