Q1FY24 Kolkata: Tata Metaliks Ltd Thursday said its net profit for the quarter ended June FY24 stood at Rs 4.55 crore, growing multifold from just Rs 1.22 crore in the previous year period.
However, the net profit fell nearly 92% when compared with Rs 55.5 crore reported in the fourth quarter of the previous fiscal.
Company's revenue from operations of Rs 650 crores and PBT of Rs 6.1 crores for the quarter.
Revenue was lower by 30% compared to Q4 FY’23 and deliveries of Pig Iron and Ductile Iron (DI) Pipe were lower by 42% and 30% respectively compared to Q4 FY’23 since one of the blast furnaces was under shut-down from end of April for major overhauling and repairs.
DI Pipe deliveries, however, have increased 1.5-fold compared to Q1 FY’23 due to enhanced production from new DI Pipe Plant # 2.
After an almost vertical ramp-up of DI Pipe Plant # 2, production has steadily increased and Finished Pipes production went past 40 kt in the quarter (35 kt in Q4 FY’23). Company’s product portfolio now covers the larger size range of 900 to 1200 mm diameter pipes which constituted almost 30% of sales from thenew plant.
On the raw material front, with Q-o-Q drop in Coal prices, TML took buying position both on an index and spot basis that has helped to lock its coke cost till Oct’23, which would help to maintain targeted spread between coke cost and Net Realisation.
With better availability of domestic Iron Ore and lower exports of iron ore fines and pellets, iron ore prices dipped by approx. 2 to 5% compared to last quarter which has helped to reduce costs.
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