Tata Metaliks profit up 6% to Rs 40 cr in Mar qtr

Tata Metaliks, a subsidiary of Tata Steel, today said its profit-after-tax (PAT) increased by 5.6 per cent to Rs 40.36 crore for the March quarter.
The company had posted a PAT of Rs 38.19 crore in the year-ago period, Tata Metaliks said in a statement.
Its turnover in the fourth quarter increased to Rs 415 crore, over Rs 380 crore in the corresponding quarter of FY 2015-16, the company said.
It recorded deliveries of 1.9 lakh tonnes (LT) of pig iron and 1.8 lakh tonnes of DI Pipe in FY 2016-17.
"The company's DI pipe division's operational and market performance is raising its bar, quarter-on-quarter, and delivering the desired results. This is adequately supported by robust market demand in water and irrigation sectors," company's Managing Director Sanjiv Paul said in a statement.

However, high cost of coal and coke and rather muted demand of pig iron are areas of concern for the company, Paul said.

Merger of DI pipe and pig iron businesses have simplified the supply chain structure and benefits of utilisation of full capacity of captive power plant and coke plant would make the company competitive at the marketplace, Paul added.
The company further said that outlook for the first quarter of ongoing fiscal for pig iron business would be challenging due to steep rise in coal and coke prices.
However, enhanced production from rebuilt blast furnace, full utilisation of DI pipe plant capacity and cost benefits from 10 mw of captive power plant is expected to mitigate the impact of higher raw material costs, the company added.