Tata Metaliks Q4 PAT slides 60% YoY to Rs 30 cr

23 Apr 2022 , 10:39 AM

The company reported exceptional profit of Rs 30.83 crore in Q4 FY22 on sale of land in Redi, Maharashtra.

Profit before tax and exceptional items fell 65.82% to Rs 42.36 crore in Q4 FY22 over Q4 FY21. EBITDA fell 56.37% YoY to Rs 63.64 crore in Q4 FY22.

Total expenses increased 43.09% to Rs 772.29 crore in Q4 FY22 over Q4 FY21, due to a sharp rise in raw material costs (up 78.53% YoY).

During the quarter, the companys revenue from Pig Iron segment grew 29.07% to Rs 641.48 crore and revenue from Ductile Iron Pipe segment climbed 8.09% to Rs 363.32 crore over the same quarter last year.

Revenue for the quarter rose 17% over Q3 FY22. Despite the continuing volatility in prices of major raw materials like coal, coke and iron ore through the quarter, the companys PBT grew by 46% over Q3 FY22 due to the buoyant finished goods prices and profit on sale of land of discontinued operation in Maharashtra. The company achieved an EBITDA margin of 8% for Q4 FY22 and 14% for the year FY22.

The board has recommended a dividend of Rs 8 per fully paid equity share (face value of Rs 10 each).

Sandeep Kumar, managing director of Tata Metaliks said: While DIP business has delivered on its planned volumes, the Pig Iron business got impacted due to lower production from one of the blast furnaces that took long to stabilize post a maintenance shutdown. The significant increase in coal, coke & consumable prices as also continuing drag of old orders (booked in FY21) of DIP has impacted our profitability. However, Profits from sale of land of discontinued operation has added to the bottom line of the company. The governments increased investment in water infrastructure has kept the demand for DI Pipes robust. Pig iron prices surged in March and are expected to remain firm with a jump in exports due to disruption in global pig iron supply chain on account of Ukraine – Russia war. Despite several challenges like two waves of COVID-19 in FY22, the company could complete most of the installation of Phase 1 of its new DI Pipe plant at Kharagpur. It is conducting hot trials & commissioning of various Plant equipment progressively using digital technologies like Augmented Reality (AR) system as it was becoming challenging for overseas engineers from the OEMs to travel to India from abroad due to covid-related visa restrictions. This plant is being built on Industry 4.0 concept and it will be one of its kind in the DI Pipe industry with high levels of automation, mechanisation and digitalisation.

Tata Metaliks, a subsidiary of Tata Steel, has its manufacturing facilities at Kharagpur, West Bengal, India which produces Pig Iron and Ductile Iron pipes. The plant annually produces around 550,000 tonnes of hot metal, out of which over 200,000 tonnes is converted into DI Pipes and the rest into Pig Iron.

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