sales of Tata Steel in India dropped by 15% yoy (compared to the same period last year) to 4.03 million tons, because the block has led to logistic problems and reduced demand caused by the stop of client operations in the automotive, construction and other segments in March. About it reports Maripolarama.
However, the production volume increased by 6% year on year to 4.74 million tons. Tata Steel India has also achieved 8% growth compared to the same period last year for the full fiscal year 2009, along with the best indicators of annual sales. This was supported by the expansion of Tata Steel limited and BSL acquisition of Tata Steel Long Products business Usha Martin Steel . Tata Steel limited BSL also showed their best results during the year. Figures are preliminary because the company has not yet announced fourth quarter and annual earnings figures.
Tata Steel India was recorded the highest in the history annual sales of branded products in retail segment, an increase of 8% compared with 19 of the financial year. The company succeeded in maintaining volumes for the segment of industrial products and projects with a strong increase in sales in the oil and gas sector and the segment of industrial pipes. The company also focused its attention on the segments of the automotive and special products increased share of sales in the segment of high-class with 19.5% in the 19 financial year to 25% in 20 fiscal year. The sales volume in Tata Steel Europe fell by almost 8% yoy to 2.37 million tonnes, while it remained at the same level.
In General, European steel demand was reduced in comparison with conventional conditions, because many customers, including European car manufacturers, is currently suspended production. The level of use is currently around 70%, and sending continues in the UK and the Netherlands, said in a statement.
"Despite the fact that the company focus on cash preservation and adequate liquidity, it continues to monitor closely the situation and has taken several initiatives to ensure that the operations are in a state of readiness to return to the initial state when the situation will improve and normalization will be restored," it said.
last week, the S & P Global Ratings panesilo the rating of Tata Steel to 'B +' on expected increase in leverage and a negative Outlook. The downgrade mainly reflects the expectations of the ratings companies that improving revenue and financial profile of Tata Steel, on which was based the rating "BB-", is unlikely to be implemented in the next 12-18 months, mainly due to failure related Covid-19.
it is Expected that the Tata Steel leverage, measured by debt to ebitda will be in the range of 6-8x in the 2020 financial year 2021 financial year. This compared to 3.3 x in March 2019 and the previous expectations of the rating companies about 5x in 2020 fiscal year 2021 and 4x in the fiscal year.
