Tata Steel reports 11.5% growth in Q1 saleable steel output

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Saleable steel production at Tata Steel's India operations for the first quarter of the current financial year stood at 1.187 million tonne, a growth of 11.5%, compared with the year-ago period.

The steel major produced 1.387m tonne of hot metal for the quarter to June 30, 2008, while crude production stood at 1.253m tonne, thus registering 3.2% and 8.6% growth, respectively, over the corresponding figures of the previous fiscal.

Total sales of the company during the quarter under review were at 1.081m tonne, an increase of 11% over the corresponding period of 2007-08. Its revenue from sales of branded products has increased by 47% compared with the previous fiscal.

The company's sales to the automotive sector increased to 0.216 mt as it achieved a market share of 42% as against 38 % in the first quarter of FY08.

Sales of skin panels for the current quarter at 7,477 tonne were significantly higher compared with 4,248 tonne during the corresponding quarter last year. The rise was attributed to many new approvals for commercial supplies obtained during the period after meeting stringent requirements of auto manufacturers.

The company during the quarter launched a new Tiscon grade Fe500 in the retail channel and super ductile rebars for earthquake-prone zones. It also commissioned Asia's largest blast furnace when it blew in its 'H' blast furnace on May 31.

The commissioning of its third caster and the vessel upgrade at the LD shop#1 were according to the schedule and will be completed by the end of September this year, Tata Steel said. All these will raise steel-making capacity at its Jamshedpur works to 6.8 mtpa from 5 mtpa at present.

During the quarter, the company, by substituting expensive raw petroleum coal with Jhama coal has saved on costs. It has also found an innovative use of otherwise non-usable coal from its own mines.