Tata Steel shares shine on highest ever crude steel production in FY22

Shares of India's largest steel manufacturing company Tata Steel jumped over 3 per cent to hit an intraday high of Rs 238.10 on BSE after the company announced that it has achieved the highest ever annual crude steel production of 19 million tons, with a growth of 13 per cent on a year-on-year (YoY) basis.

During Q4 FY22, crude steel production increased by 2 per cent on a quarter-on-quarter (QoQ) basis and stood at 4.90 million tons. 

The stock has been gaining for the last four trading sessions. It opened a tad higher at Rs 1,352 against the previous close of Rs 1,344.90. 

However, it jumped over 3 per cent and was among the top gainers on Sensex. With a market capitalisation of more than Rs 1,67,000 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Tata Steel India deliveries increased by 6 per cent YoY in FY22, surpassing the previous best recorded in FY21. Domestic deliveries grew by 14 per cent YoY driven by improved demand and the company’s robust marketing network. In 4QFY22, Deliveries grew by 16 per cent QoQ to 5.12 million tons, the highest ever quarterly deliveries.

Tata Steel Europe steel production in FY22 grew by 6 per cent YoY and total deliveries increased by 2 per cent YoY driven by broad-based improvement in most steel-consuming sectors. During 4QFY22, production was down 9 per cent QoQ due to operational issues primarily in UK, however, deliveries were up 9 per cent QoQ.

The steel major reported a surge of 139 per cent year-on-year in its consolidated net profit at Rs 9,572 crore for the quarter ending December 31, 2021. The firm had posted a net profit of Rs 4,011 crore in the year-ago period. Sequentially, the steel maker had reported a profit of Rs 12,548 crore in the September quarter.
 
The company's consolidated revenues for the quarter climbed about 45 per cent YoY to Rs 60,783 crore compared with Rs 41,935 crore in the year-ago quarter. On QoQ basis, the revenues were broadly stable as improvement in net realisations more than offset the drop in volumes, the company said in a regulatory filing.