Tata Metaliks Q1 net jumps 3-fold to Rs 22.42 cr

Tata Metaliks today reported a three-fold jump in standalone net profit at Rs 22.42 crore for the quarter ended June 30.
It had clocked a net profit of Rs 7.38 crore in the year- ago period, the firm said in a BSE filing.
Its total standalone income declined however by 5 per cent to Rs 245 crore in the April-June quarter of the current fiscal from Rs 258 crore during the same quarter of 2015-16.
The company recorded sales of 99,130 tonnes of pig iron (including molten metal) and 39,639 tonnes of Ductile Iron (DI) pipes for the quarter,
The expansion of the DI pipe plant capacity in Kharagpur has been completed and the new finishing line of the DI pipe plant has also been commissioned, it said in a statement.

The capacity increase to potentially 200,000 tonnes per annum will give 50 per cent additional volume to the firm's value-added DI pipe business in the future.

Cast pipe production of DI pipes was almost at the same level as the last quarter despite adverse size-mix. Finished DI pipe production stood at 40,776 tonnes during the June quarter.
There was a 9 per cent increase in sales price realisation of pig iron over previous quarter despite challenging market environment.
Despite depressed market environment especially for the pig iron business, Tata Metaliks operations recorded strong performance in the quarter due to increased production of DI pipes, the firm said.

Demand for DI pipes remained stable during the quarter and this is likely to persist in the coming few quarters. However, downward trend in price of DI pipe in the domestic market is continuing due to lower price of input materials and stiff competition from manufacturers, it added.
"Outlook for Q2 2016-17 for pig iron business appears to be challenging as the prices are falling while the coke prices are still high. Also, there are no signs of improvement in domestic or global demand of pig iron," it said.
However, some of the cost efficiency projects which are under implementation would be commissioned which would improve company's cost structure, it added.