Tata Steel reports 30 per cent decline in Q1; exports rise

Tata Steel, one of the largest steel producers in the world, reported its Q1FY21 production numbers along with its sales volumes. On expected lines, the registered production volume has declined by more than 30 per cent on a month-on-month basis.

The decline is largely due to the domestic lockdown. The report submitted by the company suggests that the international business is showing good signs of recovery.

The international markets, which resumed its normal economic activity much earlier as compared to India, reported a decline of 20 per cent. India's business, on the other hand, fell as much as 36 per cent.

Tata Steel India reported 2.99 MT production volumes as against 4.73 MT during the previous month. The combined production volume of Europe and South East Asia stood at 2.55 MT as against 3.17 MT in the previous month.

As per the company filing, a substantial recovery was witnessed in the month of June. The production capacity utilisation rate had reduced to as low as 50 per cent during the initial phase of the quarter, has now managed to reach 80 per cent of the total capacity in the last phase.

At 12.00 pm on Thursday, the stock of Tata Steel was trading at Rs 345, higher by 3.3 per cent on BSE.