Robust production volumes by steelmakers offers a glimpse into Q1FY24 results
Tata Steel, SAIL, JSW Steel, and JSW Ispat have announced their steel output figures in Q1FY24 - all reporting higher volumes so far. Ahead of the June quarter results, analysts and brokerage houses could catch a glimpse of the companies' overall margins and net profits based upon the production volumes reported by the steel majors at this stage. State-owned steel producer Steel Authority of India (SAIL) reported an eight per cent year-on-year growth in its crude steel production at 4.667 million tonnes (MT) during the first quarter of fiscal 2023-24.
"SAIL clocks best ever Q1 in production and sales. The figures represent a remarkable growth," the steel maker said in a statement. The company attained its highest-ever sales performance in the first quarter by achieving a sales volume of 3.9 MT, posting a year-on-year rise of 24 per cent.
SAIL is among the top three steel producing companies in India having an annual capacity of around 20 MT. In addition, Tata Steel on July 6 said that its India crude steel production stood at 5.01 million tons (provisionally), with a growth of 2 percent year-on-year (YoY) primarily driven by the ramp-up at Neelachal Ispat Nigam Limited (NINL) for the quarter ended June 30, 2023. The company also added that the production was lower QoQ on planned maintenance shutdowns.
Deliveries at 4.8 million tonnes were higher by 18 percent on a YoY basis, driven by a rise in domestic deliveries, while exports moderated on YoY basis to 0.25 million tonnes. Moreover, branded products and retail segment deliveries increased by 37 percent YoY. "This was driven by best ever 1Q sales of well-established brands - Tata Tiscon and Tata Steelium," it said.
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