Tata Steel, an Indian steelmaker with assets in Europe, increased its consolidated steel production by 4.5% quarter-on-quarter to 7.92 million tons in Q1 2024, according to the company's report. This figure represents a 1.5% increase compared to the same period in 2023. Steel shipments in January-March 2024 also rose by 11.6% quarter-on-quarter and 2.6% year-on-year to reach 7.98 million tons.
The company's Indian unit contributed significantly to these results, producing 5.4 million tons of steel in the period, up 0.9% quarter-on-quarter and 4.8% year-on-year. Steel shipments from the Indian unit amounted to 5.42 million tons, reflecting an 11.1% quarter-on-quarter and 5.2% year-on-year growth.
Despite the production and shipment increases, Tata Steel's consolidated revenue for the first quarter decreased by 6.8% compared to the same period in 2023. However, it increased by 6.1% quarter-on-quarter to Rs 58,683 crore. Profit for the period amounted to Rs 555 crore, down 64.5% year-on-year but up 6.3% quarter-on-quarter, while EBITDA reached Rs 6,631 crore.
Looking ahead, Tata Steel CEO T.V. Narendran expects steel demand in India to grow by at least 8-10% in FY2024/2025 (ending in March 2025) compared to the previous financial year. The positive outlook is supported by industry trends, as India increased steel production by 11.8% in 2023 compared to 2022, reaching 140.2 million tons. In January-April 2024, Indian steelmakers further boosted steel production by 8.5% year-on-year to 49.5 million tons.
