Tata Steel Q1 Update: Domestic Production Flat, Delivery Volumes Fall

Tata Steel Ltd.'s domestic crude steel production was largely flat year-on-year and sales fell 3.8% in the first quarter of the current fiscal, according to provisional business updates released on Tuesday.

Production stood at 5.26 million tonnes in the April-June period, compared to 5.27 MT in the same period last year. India sales came in at 4.75 MT, down from 4.94 MT reported in the previous fiscal.

The decline in finished goods production was due to maintenance-related shutdowns in Jamshedpur as well as Neelachal Ispat Nigam Ltd. However, the company has resumed Neelachal Ispat Nigam and the reline of G Blast Furnace is progressing and expected to be completed in July 2025.

In the first quarter, automotive and special products vertical deliveries rose 4% to 0.77 MT. Branded products and retail vertical deliveries were at 1.46 MT for the quarter ended June. Industrial products and projects vertical deliveries for the quarter under review was at 1.6 MT.

The engineering segment witnessed growth of 5% year-on-year due to improved volumes to oil and gas and railways. The gross merchandise value from e-commerce platforms rose 39% to Rs 1,350 crore.

The company's Netherlands liquid steel production stood at 1.7 MT, broadly stable and flat on a sequential and year-on-year basis.

Tata Steel UK is serving its customers through downstream processing of purchased substrate. The deliveries for the quarter stood at 0.6 MT. Additionally, the company said that the work on the EAF project is progressing with construction at Port Talbot on course to commence this month.

The business update was shared after market hours. The stock settled 0.26% lower at Rs 161.97 apiece on the NSE, compared to a 0.24% advance in the benchmark Nifty 50.

Tata Steel's shares have fallen 6.10% over the past 12 months and risen 17.33% year-to-date.

Out of 34 analysts tracking the stock, 22 have a 'buy' rating, seven suggest a 'hold,' and five recommend a 'sell.' The average of 12-month analysts' price target of Rs 163.93 implies a potential upside of 1.2% from its previous closing.