Tata Steel said on Wednesday its production volume grew by 6 per cent year-on-year to 4.74 million tonnes during the fourth quarter (Q4) of previous fiscal (2019-20) compared to 4.48 million tonnes in Q4 FY19.
It also achieved 8 per cent year-on-year production growth for the full year FY20 at 18.21 million tonnes as against 16.81 million tonnes in FY19.
This was supported by ramp up of Tata Steel BSL and acquisition of Usha Martin Steel business by Tata Steel Long Products. Tata Steel BSL also recorded its best-ever annual performance.
Tata Steel India witnessed highest-ever annual sales in branded products and retail segment. The company said it was successful in maintaining volumes for industrial products and projects segment with a strong increase in sales in oil & gas and industrial Pipe segment.
It also sustained focus on automotive & special products segment and increased share of high-end sales in the segment volume from 19.5 per cent in FY19 to 25 per cent in FY20.
The government announced a nationwide lockdown from March 25 to combat the spread of COVID-19 virus. As per notifications from the Central and state governments, steel and mining being essential services and continuous process industries are exempt from the lockdown measures subject to certain guidelines.
"However, the lockdown has led to logistic issues and lower demand driven by the shutdown of customer operations in automotive, construction and other segments since last few days of March," said Tata Steel.
Tata Steel Europe is also cooperating with national guidelines of the relevant countries to combat COVID-19. Despite macro headwinds, the company was able to keep production and sales stable in 4Q FY20 compared to 3Q FY20.
"Overall European steel demand has declined compared to the normal conditions as many customers, including European car manufacturers, have currently paused production," it said. "The utilisation levels are currently around 70 per cent and dispatches are continuing in both the UK and Netherlands."
Tata Steel Group is among the top global steel compes with an annual crude steel capacity of 33 million tonnes per annum. In 2018, it acquired Bhushan Steel Ltd which has now been renamed as Tata Steel BSL Ltd.
( With inputs from ANI )