Tata Steel shares slid 3% on fall in delivery volumes to 4.82 mn tons in Q2

Shares of Tata Steel were in focus on Monday after the company reported the production and delivery volumes for the July-September quarter of FY24. On Monday, the share price of the company declined as much as 2.7% to hit an intra-day low of ₹122.50.

During the session on Monday, the share price of the company opened lower at ₹124.65, down 0.9% as against the closing price of the previous session at ₹125.90. At 1:22 pm, the share price of the company was trading 2.10% lower at ₹123.25 in line with the broader BSE Sensex. At present, the share price of the company is trading 8.6% lower than the 52-week high of ₹134.85, which the company touched on September 18 this year. The share price of the company is trading 25.7% higher than the 52-week low of ₹98.10, which the company touched on October 17 last year. During the session, the company’s market capitalisation stood at more than ₹1.50 lakh crore with more than 16.20 lakh shares exchanging hands on the BSE as against the two-week average of 17.61 lakh shares.

According to a regulatory filing by the company, in the September quarter, Tata Steel’s crude steel production in the domestic market stood at 4.99 million tons, as against 4.80 million tons in the same period last year. The delivery volumes however declined from 4.91 million tons in Q2 last year to 4.82 million tons in the September quarter this year.

On a sequential basis, the company's production in the domestic market declined by 0.59% year-on-year as against 5.02 million tons in the June quarter this year. The company’s delivery volumes were up 0.4% sequentially, as against 4.80 million tons in the June quarter of this year.

"Automotive & Special Products’ segment deliveries increased by around 7% QoQ as well as YoY. This was driven by best-ever 2Q sales. Tata Steel has begun to receive approvals from automotive OEMs for cold rolled steel from the recently commissioned Cold Rolling mill at Kalinganagar," says the company.

"Branded Products & Retail' segment deliveries increased by around 3% QoQ and 6% YoY. This was driven by best ever 2Q sales of well-established brands - Tata Tiscon, Tata Steelium and Tata Astrum," it adds.

In the European market, the production and delivery volumes stood at 1.99 million tons, and 1.79 million tons, respectively during the quarter under review. This is in contrast to 2.40 million tons production volumes and 1.87 million tons delivery volumes in the same period last year.