Tata Steel: Production increases 20 pc due to BSL capacity

The steel giant reported 20 per cent YoY increase in production in Q1FY20 as the company consolidated Bhushan Steel's (BSL) numbers for the full quarter. Tata Steel also reported higher capacity utilisation at Tata Steel standalone as well as Tata Steel BSL.

Tata Steel's sales volumes grew by 16 per cent YoY in the June quarter, primarily due to the consolidation of Tata Steel BSL. Production at Tata Steel India was at 4.37 Million Tons (MT) as against 3.64 MT YoY. While sales were at 3.87 MT as against 3.34 MT YoY.

Tata Steel Europe production was subdued at 2.66 MT as against 2.81 MT YoY, and sales were at 2.27 MT as against 2.45 MT YoY.

Tata Steel South East Asia reported production of 0.58 MT as against 0.52 MT YoY with almost flat sales figure of 0.61 MT compared to year ago quarter.

Both on the domestic and international fronts, business confidence have been stressed due to the liquidity issues in NBFC and US-China trade conflict, respectively, stated the company's release. Due to this globally, steel prices have declined in the June quarter, but iron ore prices has risen sharply due to supply disruptions. However, resumption of trade negotiations between the US and China as well as the commitment of the Indian government toward resolution of liquidity crisis are expected to help improve business sentiments, going ahead, said the release.

Meanwhile, on Tata Steel was trading at Rs. 467.25 per share, down by 1.13 per cent during lunch hours on Monday.