Tata Metaliks Q3 profit dips 1.8% YoY to Rs 40 crore

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Kolkata: Tata Metaliks (TML), a subsidiary of Tata Steel posted a marginal 1.8% dip in net profit in October-December 2018 (Q3FY19) to Rs 39.63 crore against a net of Rs 40.36 crore in Q3FY18.

TML recorded a turnover of Rs 546 crore and a 1.5% rise in profit before tax of Rs 50.91 crore for the quarter ended December 31, 2018, an official statement said.

A robust order pipeline & demand from projects saw the company record its highest quarterly sale of ductile iron (DI) pipes in Q3 FY19, which was 27% higher compared to Q3 FY18. The company said while price realization of both pig iron and DI pipe was marginally higher in Q3FY19 compared to Q2FY19 by around 2%, there was a cost push by way of increase in prices of iron ore, coal and coke.

Commenting on the performance, Sandeep Kumar, TML’s managing director said: “The company has been able to keep its operating margin at around 14%, despite furnace problems faced in pig iron division during the quarter.” The furnaces are now performing well and with Pulverised Coal Injection from Q4 FY19, TML is looking forward to improved performance of pig iron division, he said. He added that Q4 of any year is usually the best quarter for DI pipe business when most of water and sanitation projects have necessary funds that need to be utilized within the financial year.

Source: Economic Times