Stock update: Tata Steel

Stock update: Tata Steel
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First Published: Thu, Oct 08 2009. 11 28 AM IST
Updated: Thu, Oct 08 2009. 11 28 AM IST
Tata Steel has posted a 19% y-o-y jump in its saleable steel sales volume, to 1.46 million tonnes (1.22 million tonnes) for 2QFY2010.
The higher sales volumes came on the back of expanded capacity, and a strong demand in the domestic market from the automobile and infrastructure sectors.
On the production front, crude steel production was higher by 21% y-o-y to 1.64 million tonnes (1.36 million tonnes), while saleable steel production was higher by 14% y-o-y to 1.52 million tonnes (1.33 million tonnes). For 1HFY2010, the company’s sales have increased by 21% y-o-y to 2.9 million tonnes (2.4mn tonnes), which is in line with our estimates.
We have factored in a 25% y-o-y growth in the saleable steel volume to 6.3 million tonnes. We maintain a NEUTRAL view on the stock.
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First Published: Thu, Oct 08 2009. 11 28 AM IST
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