Tata Metaliks Reports Strong Results for Oct-Dec Quarter
Tata Metaliks Limited has recorded revenue from operations of INR 526 crores & profit after tax of INR 75 crores for October- December 2020 quarter
Tata Metaliks Limited has recorded revenue from operations of INR 526 crores & profit after tax of INR 75 crores for October- December 2020 quarter. For the period of nine months ended December 31, 2020, Tata Metaliks Limited recorded revenue from operations of INR 1,256 crores & profit after tax of INR 145 crores. Tata Metaliks Managing Director Mr Sandeep Kumar said “The Company has delivered excellent results in its Pig Iron business despite over a month long shutdown of one of its blast furnaces for capital repairs. Strong focus on operational performance coupled with a buoyant market for Pig Iron has contributed to the high margins. Pig Iron demand is expected to remain healthy in Q4 FY'21 but the spreads may get impacted on account of the continuing hike in raw material prices. Though Dl Pipe business has been subdued this year due to impact of Covid, the outlook is quite encouraging for Q4 and beyond with good pick-up in demand and several new water projects on the anvil. The Dl Pipe expansion project which was moving slowly due to Covid has been put on fast track for completion within the next financial year."
The Company demonstrated robust performance in Pig Iron division and recorded highest quarterly deliveries of 89KT in last 5 years, which was higher by 4% and 3%, compared to Q2 FY’21 and Q3 FY'20 respectively. This was possible due to strong market demand post reopening and ramping up of operations in all major foundry clusters with 80-90% utilization levels. The strong business results have been supported by stable blast furnace operations, raw materials optimization, higher coal injection and oxygen enrichment.
Ductile Iron Pipe deliveries at 43KT were however lower by 12% and 19% compared to Q2 FY'21 and Q3 FY'20 respectively. Post Covid, the DIP industry has been under stress due to slowdown of executable projects and limited release of government funds towards Water Infrastructure projects. However, signs of recovery are visible with deliveries picking up by the end of the quarter with December'20 recording the highest monthly Dl Pipe sales in the current fiscal for TML.
Kharagpur West Bengal based Tata Steel’s subsidiary Tata Metaliks Limited annually produces around 550,000 tonnes of hot metal, out of which over 200,000 tonnes is converted into Dl Pipes and the rest into Pig Iron.