According to Mining News Pro -Tata Metaliks Limited (TML) posted a gain of 21.5% in net profit (PAT) in H1 FY19 to INR 77.92 crore on rise in production and higher price realizations, as per press release.
Total earnings before interest taxes depreciation and amortisation (EBITDA) in H1 FY19 was INR 153.75 crore compared to INR 127.05 crore in H1 FY18.
Total sales went up to 152,377 MT of Pig Iron and 97,777 MT of DI Pipe for H1 FY19 compared to 134,627 MT of Pig Iron and 94,667 MT of DI Pipe in H1 FY18.
As per report, the increase in sales & margins are coupled with improved cost efficiencies particularly in usage of coke helped the company achieve a significant growth. The increased sales volume of both the products were supported by higher price realization of 9% for DI pipes and 21% for Pig Iron in Q2 FY’19 over same quarter of the previous year. However, there was a cost push by way of increase in prices of iron ore, coal and coke.
Further, the company assumes positive outlook for H2 FY19 on assumptions of boost in demand of DI pipes after the monsoons and major festivals though there is continued upward pressure on prices of key raw materials - iron ore, coal and coke. Rupee depreciation will also have a cost push impact on account of imported raw materials and consumables.
Tata Metaliks Limited is a subsidiary of Tata Steel which was established in 1990. It has its manufacturing facilities at Kharagpur, West Bengal, India which produces pig iron and ductile iron pipes. The plant`s annual hot metal production capacity is 500,000 MT out of which about 200,000 MT is converted into Ductile Iron (DI) pipes and the rest into pig iron.