Tata Metaliks Q1 net profit falls sharply to Rs 1.22 crores.
Tata Metaliks Ltd reported a net profit of Rs 1.22 crores in Q1 FY23. The net profit fell by 98.71% YoY from Rs. 94.72 crores and down by 97.67% QoQ from Rs. 52.46 crores. The decline in the net profit for the June quarter was on account of higher expenses.
During the June quarter, the expenses climbed up to Rs 667.72 crore from Rs 471.62 crore, up by 41.58% on yearly basis.
The expenses increased due to higher input costs. DIP business has delivered close to its planned volumes, the pig iron business got adversely impacted due to lower production and 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. 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 also dropped 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 moved up significantly (coke price was up 30% over Q4). Profitability was severely impacted in the quarter owing to the above factors.
However, the total revenue increased by 10.37% YoY, from Rs. 606.45 crores to Rs. 669.35 crores due to increased realization of both Pig Iron and DI Pipe by ~36 to 40%. The revenue slipped by 17.84% QoQ from Rs. 814.65 crores. During the quarter there was an increase in the prices of coal, coke and other consumables. Another factor for the decline in profitability is the continuing drag of old DIP orders booked in FY21. Moreover, a sharp drop in pig iron prices post imposition of a 15% export duty severely affected the profitability in the June quarter.
EBITDA stands at Rs. 27.11 crores in the June quarter. It declined by 82.73% from Rs. 156.99 crores in Q1 FY22. The profit before tax stood at Rs. 1.73 crores, down by 97.64 % QoQ from Rs. 73.19 crores and 98.72 % YoY from Rs. 134.83 crores. The EPS has also decreased to Rs. 0.39 in June 2022 from Rs. 29.99 in June 2021 i.e. by 98.70%. The EPS fell by 97.65% QoQ from Rs. 16.61
Currently, the shares of Tata Metaliks are trading at Rs. 706.70 as compared to the previous close of Rs. 700.90, up by 5.05 points or by 0.86%. The shares opened at Rs. 701.50. The market cap of the company is Rs. 2,232 crores.