Tata Metaliks Q2 profit jumps to Rs 44.16 crore

Jamshedpur, Oct 17: Tata Metaliks Limited on Tuesday declared its Financial Results for the second Quarter ended September 30, 2023. The Company recorded Revenue from Operations of ₹755 Crores and PBT of ₹62 Crores for the Quarter.

The company posted an over three-fold jump in net profit at Rs 44.16 crore for the quarter ended Sept 30, 2023.

It had clocked Rs 14.29 crore net profit in July-September period a year ago, the company said. Total income fell to Rs 758.05 crore from Rs 881.77 crore in the year-ago quarter. Expenses declined to Rs 696.41 crore fr om Rs 861.64 crore in July-September 2022-23.

There have been significant improvements in all round operational performance including much higher deliveries of Ductile Iron (DI) Pipe as compared to the previous Quarter. Revenue for the Quarter saw an increase of 16% Q-o-Q, driven primarily by higher deliveries and realization of DI Pipe by 19% and 3% respectively.

One of the Blast Furnaces, which was recently commissioned after operational overhaul and repair, has ramped up to its rated capacity in a very short period. In DI Pipe Plant #2, production has increased steadily and Finished Pipes production has increased Q-o-Q from 73 kt in Q1 to 81 kt in Q2. Company’s product portfolio of larger size range, 900 to 1200 mm diameter pipes, constituted almost 30% of sales from the new DI Pipe plant.

On the raw material front, with Q-o-Q increase in coal prices, the Company could control its input costs with its agile strategic sourcing decisions, which also facilitated maintaining targeted spread between coke cost and DI Pipe realisation.

Healthy operating parameters and lower costs, coupled with strong market pull of DI Pipe helped the Company record a 10-fold increase in Q-o-Q PBT along with a healthy EBITDA margin of 12% (Q1 – 6%).

Alok Krishna, Managing Director of Tata Metaliks said: “While DI Pipe business has delivered as per its planned volumes, Pig Iron sales is also going to contribute to top line after commissioning of the overhauled blast furnace. The Company’s DI Pipe business has a healthy order book for FY’24 and Q1FY’25 execution because of robust demand for Government’s water infrastructure projects. The Company is geared up and well positioned to meet this demand in the upcoming quarters through additional volumes from the new DI Pipe plant which has ramped up very well in a short time.”