India's Top Steel Manufacturers’ Quarterly Comparison of Crude Steel Output
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The first three quarters of FY18 (i.e. from Apr-Dec’17) proved to be quite an eventful year for Indian steel sector. The country’s domestic demand surged amid improved sentiments in country’s infrastructure sector and subsequently led to increase in crude steel output.
As per the JPC data, India’s crude steel production during Apr-Dec’17 is recorded at 75.5 MnT against 72.2 MnT in corresponding period of previous fiscal FY17, a growth of 4.6% YoY.
India’s top five steel producers, SAIL, Tata Steel, JSW Steel, RINL, and Essar Steel together produced 43.5 MnT of crude steel during Apr-Dec’17, a growth of 6.5% Y-o-Y basis. Let us look at the quarterly performance of these producers in FY18.
SAIL records a growth of 7.8% Y-o-Y basis in Q3 FY18
SAIL’s crude steel production for Q3 FY18 (Apr-Dec’17) is recorded at 3.88 MnT against 3.60 MnT in Q3 FY17, an increment of 7.8%. Whereas, for Q2 FY18, the same was recorded at 3.83 MnT, a growth of 1.31%.
The company turned profitable in Q3 FY18 after incurring losses in last ten quarters. The key reasons cited by the management for company’s turnaround are increased production, higher efficiencies, focused marketing, cost control initiatives, a massive two way company-wide communication exercise, and dedicated workforce.
As per the recent announcement made by the company, SAIL is set to increase its market share which is 14.9% in Dec’17 by undertaking modernisation and expansion work of its five integrated steel plants across India. The company plans to increase its production capacity from 12.8 MnT to 21.4 MnT per annum.
| Company | Q3 FY17 | Q3 FY18 | Q2 FY18 | Y-o-Y change | Q-o-Q change |
| SAIL | 3.60 | 3.88 | 3.83 | 7.8% | 1.31% |
Quantity in MnT
JSW Steel’s output for Q3 FY18 up by 16.7% Y-o-Y basis
JSW Steel’s crude steel production for Q3 FY18 (Apr-Dec’17) is recorded at 4.27 MnT against 3.66 MnT in Q3 FY17, a growth of 16.7%. Whereas, for Q2 FY18, the same was recorded at 4.08 MnT, a surge of 4.7%. The company’s production increased amid improved domestic demand.
Like SAIL, JSW Steel is also expanding itself in other geographies. The company is planning setting up of a mega steel plant at Paradip, Odisha. It is also scouting for three stressed assets and bidding for Bhushan Steel and Bhushan Power & Steel and Monet Ispat which are all at the NCLT (National Company Law Tribunal).
According to company’s officials, the company’s doubling of steel-making capacity from 5 MnT to 10 MnT per annum is expected to be commissioned by March 2020. It is also expanding its Vijayanagar CRM complex capacity from 0.85 mtpa to 1.8 mtpa expected to be commissioned by September 2019.
| Company | Q3 FY17 | Q3 FY18 | Q2 FY18 | Y-o-Y change | Q-o-Q change |
| JSW Steel | 3.66 | 4.27 | 4.08 | 16.7% | 4.7% |
Quantity in MnT
Tata Steel’s crude steel production in Q3 FY18 surge by 3.2% Y-o-Y basis
Tata Steel’s crude steel production for Q3 FY18 (Apr-Dec’17) is recorded at 3.25 MnT against 3.15 MnT in Q3 FY17, a growth of 3.2%. Whereas, for Q2 FY18, the same was recorded at 3.20 MnT, a surge of 1.6%. According to the company’s officials, in Q3 FY18, Tata Steel have witnessed strong volume growth across the verticals as well as an increase in realisations.
The company’s Kalinganagar facility is currently undergoing capacity expansion from 3 MnT to 8 MnT per annum which is likely to be completed in next two years. The company aims to overcome the volatility in steel business by widening the portfolio of its value-added products.
| Company | Q3 FY17 | Q3 FY18 | Q2 FY18 | Y-o-Y change | Q-o-Q change |
| Tata Steel | 3.15 | 3.25 | 3.20 | 3.2% | 1.6% |
Quantity in MnT
Essar Steel records crude steel output at 1.56 MnT in Q3 FY18, up by 12.2% Y-o-Y
Essar Steel’s crude steel production for Q3 FY18 (Apr-Dec’17) is recorded at 1.56 MnT against 1.39 MnT in Q3 FY17, a growth of 12.2%. Whereas, for Q2 FY18, the same was recorded at 1.38 MnT, a surge of 13.04%.
The company had high debts of around INR 45,000 crore, out of which INR 31,167 crore became non-performing assets as of 31 Mar’16. The company has filed for bankruptcy with NCLT and is currently inviting bids from the companies for purchase of company’s assets.
| Company | Q3 FY17 | Q3 FY18 | Q2 FY18 | Y-o-Y change | Q-o-Q change |
| Essar Steel | 1.39 | 1.56 | 1.38 | 12.2% | 13% |
Quantity in MnT
RINL’s crude steel production up by 8.6% in Q3 FY18 Y-o-Y basis
RINL’s (Rashtriya Ispat Nigam Limited) crude steel production for Q3 FY18 (Apr-Dec’17) is recorded at 1.13 MnT against 1.04 MnT in Q3 FY17, a growth of 8.7%. Whereas, for Q2 FY18, the same was recorded at 1.15 MnT, a downtrend of 1.7%.
According to company’s officials, RINL is on its way to recovery after two difficult years and is likely to earn operational profits by the end of fiscal FY18. In FY18, RINL’S Vishakhapatnam plant was successfully able to complete its expansion project where it doubled its capacity to 6.3 MnT and also undertook modernisation project that totalled its production capacity to 7.3 MnT.
| Company | Q3 FY17 | Q3 FY18 | Q2 FY18 | Y-o-Y change | Q-o-Q change |
| RINL | 1.04 | 1.13 | 1.15 | 8.7% | -1.7% |
Quantity in MnTSAIL
