Tata Steel, the private sector integrated steel maker, share price recovered from the day’s low, after having fallen as much as 2.56% to Rs 259.25, on release of business update for the fiscal fourth quarter to Mar 2020.
The Tata Group company’s production volumes grew 6% to 4.74 million tonnes (mt). For the full year of FY20, production volumes grew 8% compared to last year.
It also reported its highest ever annual sales in Branded products and Retail, showing a growth of 8% on year.
However, it witnessed 15% decline in sales at 4.03 mt, against 4.72 mt in the same period last year, due to depressed demand.
Demand in Europe has declined, as many customers including European carmakers have paused production. Utilisation levels in Europe are currently around 70%.
As the Coronavirus pandemic spread across the world, many countries have been taking actions to restrict the movement of people and industrial activities.
As steel is considered an essential and continuous process industry, it has been exempted from the nationwide lockdown in India. However, the lockdown has led to logistics issues and lower demand, driven by the shutdown of customer operations in automotive, construction and other segments.
The company is operating integrated steelmaking facilities at lower utilisation levels while operations at the downstream facilities have been suspended and put on care and maintenance mode.
Meanwhile, the company said that it remains focused on conserving cash and ensuring adequate liquidity.
It also continues to monitor the situation closely and has taken several initiatives to ensure that the operations are in a state of readiness to ramp back as the situation improves and normalcy is restored.
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