Tata Steel reports 6% YoY rise in crude steel production during Q3 FY25; check details, and how shares are performing

The steel major on Tuesday said its crude steel production in the country grew by 6% to 5.68 million tonnes in the third quarter of the current fiscal (Q3 FY25).

The company's crude steel output was 5.35 MT in the corresponding quarter of the previous fiscal.

At 9:43 AM, the stock of Tata Steel was trading at ₹133.15 on the BSE, down 0.15%.

"Tata Steel India's crude steel production stood at 5.68 million tonnes. Production was up 8% quarter-on-quarter and 6% year-on-year, aided by the commissioning of the five MTPA blast furnaces at Kalinganagar in September," the steel firm said in a regulatory filing.

Deliveries in India reached 5.29 MT for the third quarter, up 8.4% year-on-year, due to steady sales in the domestic market and strategic presence in exports.

Tata Steel Netherlands reported liquid steel production of 1.76 million tonnes for the third quarter with deliveries at 1.53 million tonnes.

"Deliveries include volumes to UK operations of around 0.12 million tonnes. For nine months of FY25, deliveries were up 16% year-on-year, primarily due to improved production," the filing said.

Tata Steel UK's output stood at zero for the quarter on account of the closure of its blast furnaces in the second quarter of FY25. Deliveries dropped 12.5% year-on-year to 0.56 million tonnes.

However, the company has reconfigured its supply chain to sustain customer servicing through downstream processing of purchased substrates, the filing said.

Recently, Tata Steel CEO and managing director TV Narendran said while the global steel sector is struggling to generate profits due to factors such as China's aggressive pricing, the demand for the metal and its consumption in India is growing.

Addressing a gathering at a New Year event on January 1, Narendran said 2023 and 2024 have been difficult for the sector globally because of compression in steel margin and a continued struggle to make profits, particularly due to the curbs imposed in China during COVID.

On global conflicts, Narendran said events happening in various parts of the world have direct or indirect impacts on India. However, the most significant challenge the country faces is the slowdown in China, where recovery is yet to materialise.

Narendran expressed concern over China's unfair competition, urging the Indian government to take steps to safeguard domestic industries. Despite these challenges, he assured that Tata Steel is well-positioned and profitable in India due to its competitiveness and the growing demand for steel.

Shares of Tata Steel have remained unchanged in the past 12 months.