TATLY - Tata Steel Limited (TATLY) Q3 2024 Earnings Call Transcript

2024-01-25 21:06:10 ET

Tata Steel Limited (TATLY)

Q3 2024 Earnings Conference Call

January 25 2024 3:30 AM ET

Company Participants

T.V. Narendran - CEO and Managing Director

Koushik Chatterjee - Executive Director and Chief Financial Officer

Samita Shah - VP, Corporate Finance, Treasury and Risk Management

Conference Call Participants

Ritesh Shah - Investec

Indrajit Agarwal - CLSA

Amit Dixit - ICICI Securities

Ashish Kejriwal - Nuvama

Amit Murarka - Axis Capital

Kirtan Mehta - BOB Capital

Alok Deora - Motilal Oswal

Satyadeep Jain - AMBIT Capital

Anupam Gupta - IIFL

Tarang Agarwal - Old Bridge Capital

Ashish Jain - Macquarie

Presentation

Operator

Thank you everyone. Ladies and gentlemen, good day, and welcome to the Tata Steel Analysts' Call. Please note that this meeting is being recorded. All the attendees' audio and video has been disabled from the back end and will be enabled subsequently.

I would now like to hand the conference over to Ms. Samita Shah. Thank you. And over to you, ma'am.

Samita Shah

Good afternoon, everybody, and welcome to this call to discuss our results for the Third Quarter of FY24. We have with us, Mr. T.V. Narendran, CEO and Managing Director, Tata Steel and Mr. Koushik Chatterjee, Executive Director and CFO, Tata Steel. I hope you had a chance to go through our results which were published yesterday as well as the presentation which is on our website. As usual, the entire discussion today will be covered by the Safe Harbor clause which is on Page 2 of the presentation. We will make a few opening comments before opening the floor for questions, both audio as well as chat.

With that, I will hand it over to Naren. Thank you.

T.V. Narendran

Thanks, Samita. Good morning, good afternoon to all of you. I am going to make a few comments and then pass on to Koushik for his comments and then we will open it up for the questions.

During the quarter, the steel prices were mixed across key regions driven by different factors. So, in the US and EU, the tightness in the steel supply and elevated raw material prices led to a rebound in steel spot prices towards the end of the quarter, while in Asia, sustained weakness in the Chinese domestic demand has led to elevated exports weighing on the prices in general.

In India, the steel prices had held up given the strong domestic demand until October 23, but steady exports from China had driven the build-up in the trader’s inventory and this has resulted in a 4% to 5% drop in steel prices in November/December. Despite this context, Tata Steel has improved on its margins in the third quarter aided by higher deliveries as well as net realisations in India.

Moving on to our performance, India crude steel production was at around 5.3 million tons driven by close to 100% capacity utilization on an overall basis and production increased by 6% quarter-on-quarter and year-on-year basis. India deliveries were close to 4.9 million tons and were up quarter-on-quarter as well as year-on-year. And this has been driven by a rise in domestic deliveries by about 10% year-on-year, which is broadly in line with the increase in the apparent steel demand in India. ...

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