Tata Steel FY10 sales up 18% on strong demand

Mumbai: Tata Steel on Tuesday said its sales during 2009-10 grew 18% to 6.17 million tonne, against 5.232 million tonne in the previous fiscal. The worlds eighth-largest steel manufacturer credited the rise to good demand from automobile and infrastructure sectors.

Its long product sales in FY10 grew 34% to 2.697 million tonne from 2.006 million tonne in FY09, whereas flat products sales stood at 3.473 million tonnes from 3.226 million tonnes last year, up 8%.

Long products are used mainly for construction, while flat products are used primarily in the automobile industry. Tata Steel shares closed at Rs 685.50 at the Bombay Stock Exchange (BSE) on Tuesday, up 0.99% from the previous days close.

The Indian operations contribute to about a quarter of the groups total annual global capacity of 30 million tonne, which includes Corus, Europes second-largest steelmaker. Hot metal production in FY10 touched 7.231 million tonne, compared to 6.254 million tonne in the previous year, a rise of 16%. Crude steel output rose 16% to 6.439 million tonne, compared to 5.375 million tonnes in FY09. Moreover, production of saleable steel increased by 20% to 6.439 million tonne as against 5.375 million tonne in FY09.

Capacity enhancement of the C blast furnace from 0.4 mtpa to 0.7 mtpa was commissioned in September 2009. It is the first operating blast furnace in the world to incorporate Gimbal Top technology for raw material charging system, Tata Steel said. Meanwhile, citing higher raw material prices, Tata Steel, along with other steel manufacturers, have raised steel prices by Rs 2,500-3,000 a tonne in India from April 1.

Tata Steels profits for the third quarter ended December 2009 from its Indian operations more than doubled on strong demand from the auto and construction sectors. The steel ministry says that steel consumption in India grew 8% in the fiscal ended March 2010 after shrinking a little a year ago, due to strong demand from automobile infrastructure and housing sectors. Consumption rose to 56.3 million tonne in the twelve months to March 2010, from 52.3 million tonne in the previous year. Meanwhile, production rose 4.2% to 60 million tonne.

Source: indiacar.com Source : Webindia123 (4/9/2010)