Tata Metaliks earns Rs 75 crore in the third quarter, a turnover of 1256 crore in nine months. Tata Metaliks has released the third-quarter financial report for the year ended 31 December 2020.
The company, after recovering from Covid 19 in the third quarter, posted a net profit of Rs 75 crore with a growth of 20 percent.
At the same time, the company operated a total of Rs 1256 crore during the nine months period from April 1 to December 31, 2020, and has earned a total profit of Rs 145 crore in this nine-month as compared to the previous year.
Tata Metaliks has done well in the pig iron division. Compared to the last five years, the company has registered a strong growth of four percent and three percent in its deliveries respectively in the second and third quarter of the current financial year.
According to the company, there was a huge demand in the market due to the strength of the foundry business. This has been possible due to the strong market, better operation of a blast furnace, compatibility of raw materials, and coal procurement.
At the same time, in the delivery of DI pipes, the company registered strength of 19 percent in the third quarter compared to 12 percent in the second quarter.
Covid also shows impact However, the government did not take much initiative in this direction due to the sluggishness in the basic projects after Post Covid, due to which there was little drag on the government order of DI pipe.
But the market is showing good signs of DI pipe sales in the last quarter. However, the company management says that the price of coal in the domestic market has increased by 15 percent compared to the previous quarter.
At the same time, the price of raw materials also rose by 24 percent in the third quarter compared to 22 percent in the previous quarter. Despite this, the company’s pig iron prices have increased.
We did excellent business: MD
Sandeep Kumar, MD, Tata Metaliks, says that despite a one-month shutdown in the blast furnace, we have done tremendous business in the pig iron business. We earned good margins due to better demand for pig iron.
However, the continuous increase in prices in the last quarter may affect our profits. Though DI Pipe business remained very limited despite the impact of Covid 19, we expect the last quarter to be encouraging.