Tata Steel reported an increase in production and delivery volumes for the June quarter on a year-on-year basis, though the numbers were lower compared to the March quarter.
The company now also faces uncertainties regarding its UK business post the recent election outcome.
According to reports, Tata Steel faces some uncertainty regarding its UK operations following the recent election, where the Labour Party ended the Conservatives' 14-year tenure at 10 Downing Street. According to brokerage firm Investec, various challenges may eventually affect Tata Steel's trading multiples.
Production in India stood at 5.25 million tonnes, up from 5.02 million tonnes last year but down from 5.4 million tonnes in the March quarter. Production in the Netherlands also increased year-on-year to 1.72 million tonnes, which was higher than the 1.48 million tonnes in March. UK production remained flat over both periods, as did production in Thailand.
Delivery volumes in India increased to 4.94 million tonnes from 4.79 million tonnes last year but were down from 5.42 million tonnes in March. Delivery volumes in the Netherlands were up on both a year-on-year and sequential basis.
Domestic sales were driven by the automotive and special products segment, which grew by 14 per cent from last year. Sales in the Branded Products and Retail segment increased by 6 per cent from last year to 1.7 million tonnes. The engineering sub-segment also registered its best-ever quarterly sales.
Tata Steel Aashiyana, an ecommerce platform for individual homebuilders, reported its best-ever first-quarter revenue of Rs 644 crore, up 73 per cent year-on-year, led by a 50 per cent surge in its unique customer base.
The company also mentioned that operations have ceased at Blast Furnace 5 at Port Talbot, where the last liquid iron was produced on 4 July, and it is being safely decommissioned. The second furnace will shut down in September.
Tata Steel faces some uncertainty regarding its UK business after the recent election outcome, where the Labour Party trounced the Conservatives, ending their 14-year rule at 10 Downing Street. According to brokerage firm Investec, multiple headwinds may eventually impact Tata Steel's trading multiples.