Tata Metaliks Q1 Results FY2023, PAT at Rs. 1.22 Crore

On 13th July  2022, Tata Metaliks an entity of Tata Group which produces Pig Iron and Ductile Iron pipes announced its quarterly results for the first quarter of FY2023. 

Q1FY23 Key Highlights:

- The company recorded revenue from operations of Rs. 666 Crores saw an increase of 11% Y-o-Y over Q1 FY’22 driven by the increased realization of both Pig Iron and DI Pipe by 36 to 40%. 

- Sales Volume of Pig Iron & DI Pipe were lower by 23% & 8% respectively on a y-o-y basis owing primarily to softening of the market sentiment of Pig Iron from mid-May onwards. 

- Pig Iron prices witnessed a sharp drop in market prices after the imposition of export duty by the Govt on 22nd May 2022. 

- On the Raw materials front, coal and coke prices increased significantly (coke price was up 30% over Q4). 

- PBT of Rs 1.73 Crores for the quarter ended June’22, declined by 97.6% QoQ and by 98.71% YoY

- The PAT for Q1FY23 was reported at Rs. 1.22 crore, seeing a decline by 97.67% QoQ and by 98.71% YoY.

Segment Revenue:

- For Q1FY23, the revenue from Pig Iron declined by 6.91% on a QoQ basis and by 14.94% on a YoY basis. 

- For Q1FY23, the revenue from the Ductile Iron Pipe declined by 23.57% on a QoQ basis and growth by 23.10% on a YoY basis. 

Commenting on the results, Mr. Sandeep Kumar, Managing Director of Tata Metaliks said: “While DIP business has delivered close to its planned volumes, the Pig Iron business got adversely impacted due to lower production & higher cost arising out of the annual maintenance shutdowns and also on account of operational issues in one of the blast furnaces for much of April and May. Significant increase in coal, coke & consumable prices, continuing drag of old orders (booked in FY21) of DI Pipe and a sharp drop in Pig Iron prices post imposition of 15% export duty on Pig Iron have severely dented our profitability this quarter. The Pig Iron market has stabilized and has shown a slight upward trend since the beginning of July. Coal prices have dropped significantly with Prime hard coking coal having come down from USD 500/t FOB average in May to below USD300/t average in July. All these factors present a positive outlook for Pig Iron business in Q2. Government’s increased investment in water infrastructure is expected to keep the demand for DI Pipes robust, though Q2 is a seasonally weak quarter. Subsequent quarters are expected to be much better with demand of DI Pipe picking up and supported by additional volumes from the new DI Pipe plant.”