Tuesday, September 27, 2022

Tata Metaliks Limited achieves 4 fold jump in Profit before Tax

Kolkata: Amidst the continuing Covid-19 pandemic, Tata Metaliks (“TML”) today declared its Financial Results for the second quarter (Q2 FY’21) that ended on September 30, 2020. 

Despite the continuing economic slowdown due to the Covid-19 pandemic, TML has delivered a strong quarterly performance led by increased sales volumes and improved efficiency; it has recorded Revenue from Operations of Rs 520 crores and Profit before Tax of Rs 90 crores for the quarter (Q2). For the first half of the current fiscal (H1 FY’21), its Revenue from Operations and Profit before Tax stands at Rs 730 crores and Rs 74 crores respectively. Highlights of the Company’s performance are:

After a muted performance in the first quarter (Q1 FY’21) due to suspension of production and dispatch for most of the quarter due to nationwide lockdown, the Company has been able to put up a healthy performance in Q2. Delivery of Pig Iron for the quarter was around 170% higher than Q1 FY’21 and 12% higher than Q2 FY’20. Delivery of DI Pipe was also 80% higher than Q1 FY’21, though it dropped 13% compared to Q2 FY’20 because of delays in project sites arising out of Covid impact.      

The Company reported Q2 EBITDA of ~Rs 112 crores (EBITDA margin at around 21%), which is 140% higher YoY against ~Rs 47 crores in Q2 FY’20. This is mainly attributable to higher spreads between raw material and finished goods prices as also due to results of the structural and operational cost reduction initiatives that the company has embarked on in the recent past. 

Performance Highlights:

Figures in Rs. Cr. unless specified                                                                        

FY’20H1 FY’20H1 FY’21Q2 FY’21Q1 FY’21Q2 FY’20
313,992148,316117,789Pig Iron sales (t)85,68432,10576,739
217,712109,65976,052DI Pipe sales (t)48,90827,14456,033
300.4296.09122.91EBITDA111.6611.2546.74
65.0630.6136.03Depreciation16.4119.6216.13
33.1414.9913.14Finance costs5.048.107.65
202.2250.4973.74PBT – from continuing operations90.21(16.47)22.96
165.9643.0169.64PAT82.00(12.36)23.39
59.0915.3124.69Earnings per Share – Basic (Rs.)28.96(4.40)8.32
52.5513.6122.05Earnings per Share – Diluted (Rs.)25.97(4.40)7.40

Managing Director’s Comments

Mr. Sandeep Kumar, Managing Director of Tata Metaliks said: “The Company has had an almost vertical ramp-up of its production and sales in both its businesses despite the continuing uncertainty caused by the pandemic. In Q2 the Company has bounced back with the blast furnaces delivering robust performance in terms of higher productivity, reduced fuel rates and higher coal injection rates; DI Pipe plant operations have also done well with further visible improvements. While Pig Iron demand has shown a healthy pull with foundries ramping up to 80-90% of their capacities, DI Pipe demand may remain under pressure till government spending picks up in infrastructure (including water, sanitation and irrigation infrastructure projects) in the months to come. The Company has been focused on conserving cash and has been successful in significantly bringing down its net borrowings q-o-q. With infusion of Rs.168 crore by Tata Steel against preferential allotment of equity shares, TML today stands at zero debt and cash positive. While demand of Pig Iron is expected to remain healthy in Q3 FY’21, the spread between realisation and raw materials prices would be under pressure due to rising raw material prices.”

Tata Metaliks Limited is a subsidiary of Tata Steel which started its commercial production in 1994. It has its manufacturing facilities at Kharagpur, West Bengal, India which produces Pig Iron and Ductile Iron pipes.

ALSO READ

Sep. 9, 2022 Bonus agreement1

Tata Steel & TWU sign annual Bonus Agreement

0
Annual bonus for the year 2021-2022 is Rs 317.51 Cr, total 23710 employees eligible for bonus company wide Jamshedpur: A Memorandum of Settlement dated 9th...
Sep. 6, 2022 TSAF Twon Peak Expedition

TSAF team successfully completes Twin Peaks expedition in Leh–Ladakh

0
Expedition was led by Asmita Dorjee, the first Indian woman to reach an elevation of 8749m on Mt Everest without supplemental oxygen. Jamshedpur: This Independence...

OPINION

MGM College & Hospital needs Govt attention!

0
The condition of MGM College & Hospital needs urgent attention of the state government, especially the Health Minister Banna Gupta himself. Being a referral hospital,...
Town Post Edit

India must stop Hindu genocide in Pakistan and Bangladesh

0
It took a former Congressional candidate Manga Anantmula, the mother of a US Navy commander to call out Pakistan’s systematic cruelty against minority women....

TRENDING NOW

Aug. 11, 2022 Croma launch7 (1)

Bistupur gets 1st Croma store of Jamshedpur, 2nd in Jharkhand

0
Expansive Electronics retail destination now open opposite Gopal maidan at Bistupur, Jamshedpur Jamshedpur: Croma, India’s first and trusted Omnichannel electronics retailer from the Tata Group,...
SP Anand Prakash holds crime meeting

Seraikela-Kharsawan SP Anand Prakash issues instructions to curb crime

0
SP holds crime meeting, issues instructions to monitor social media Jamshedpur: The Seraikela-Kharsawan SP Anand Prakash held a crime meeting Monday with all the police...

Feel like reacting? Express your views here!

Read More

Comments

Recent

Subsribe Our Newsletter & get Free Daily News & Opinion updates!

Town Post

FREE
VIEW