BackCompany Update: Tata Steel
Company Update: Tata Steel
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Tata Steel has posted a 25% y-o-y jump in steel sales volumes to 0.49 million tonnes (0.39mn tonnes) for the month of August 2009.
The higher sales volumes came on the back of an expanded capacity and strong domestic demand coming in from the automobile and infrastructure sectors.
On the production front, crude steel production was higher by 16% y-o-y to 0.55 million tonnes (0.47mn tonnes), wherein salable steel production was higher by 14% y-o-y to 0.53 million tonnes (0.46mn tonnes).
So far, in FY2010, the company’s sales were higher by 22% y-o-y to 2.39mn tonnes (1.96mn tonnes), which are in line with our estimates.
We have factored in a 25% y-o-y growth in salable steel volumes to 6.3mn tonnes. We maintain an ACCUMULATE view on the stock.
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