Kolkata: Tata Metaliks Limited recorded a 15% growth in turnover at Rs.468 crores in Q1 FY’19 as compared to Rs.405 crores for the same quarter of last year. Total deliveries were of 68,393 tonnes of Pig Iron and 47,042 tonnes of DI Pipe for Q1 FY’19 compared to 52,752 tonnes of Pig Iron and 49,036 tonnes of DI Pipe in Q1 FY’18. Total EBITDA in Q1 FY’19 was Rs.67.22 crores compared to Rs.60.08 crores in Q1 FY’18.
Sandeep Kumar, Managing Director of Tata Metaliks Limited said, “The Company’s operating profit in Q1 FY’19 improved by over 10% over the same period of last year despite loss of production due to unplanned shutdown of one of the furnaces that impacted production and cost. We are optimistic that the forthcoming quarters would be better in view of coke security (over 80% of our requirement gets covered through captive and long-term conversion contract), expected stable operation of the blast furnaces, robust foundry pig iron demand, comfortable order book for DI Pipes and expected cost savings to be accrued through several improvement projects being implemented across the organisation. Company’s major cost saving project on pulverised coal injection in the blast furnaces is on schedule and is expected to be on stream in the next 5 – 6 months.”
Pig Iron business in Q1 FY’19 recorded 30% higher sales and 20% higher price realisation compared to Q1 FY’18 due to steady market demand and strong cost push of coal and coke. In the DI Pipe business, as expected, the first quarter of the year witnessed delay in release of fresh funds for infrastructure projects which slowed down dispatches. DI Pipe sales and price realization was at par with Q1 of the last financial year.
Sales of DI Pipe have been lower as compared to Q4 FY’18, which is not unexpected since the last quarter of a financial year is usually the best with maximum release of project funds and good weather. Q2 FY’19 is witnessing softening of international prices of coal and coke as also of domestic iron and steel prices. This may put pressure for price correction of pig iron in the domestic market.