Company Update - Tata Metaliks - ICICI Direct

Posted On : 2023-01-21 09:28:09( TIMEZONE : IST )

Company Update - Tata Metaliks - ICICI Direct

Tata Metalik's (TML's) Q3FY23 performance was adversely impacted by operational issues with one of the blast furnaces, which had frequent shutdowns thereby increasing the operating costs. The blast furnace was repaired in early December 2022 and is now operating well.

- TML's revenue was at Rs. 790 crore, up 15% YoY but down 10% QoQ. TML's pig iron sales volumes were at ~63000 tonnes, down 25% YoY. TML's ductile iron (DI) pipes sales volume was at ~77000 tonnes, up 16% YoY & 11% QoQ. The growth in DI pipe volume was aided by the new plant. DI pipe plant - 2 (new plant) had a vertical ramp-up wherein production of finished DI pipes touched 25 KT in Q3FY23 compared to 13 KT in Q2FY23

- TML's EBITDA for the quarter was at Rs. 39 crore, down 43% YoY and 5% QoQ. TML's EBITDA margin for the quarter was at 4.9% compared to 4.7% in Q2FY23 and 9.8% in Q2FY23

- Ensuing PAT for Q3FY23 was at Rs. 9 crore, down 74% YoY and 34% QoQ

Key triggers for future price performance

- Domestic demand of pig iron is expected to firm up in Q4FY23 as utilisation levels in general castings, agriculture, etc are likely to improve

- Demand outlook for DI pipes for Q4FY23 is robust in line with government's increased outlay through Jal Jeevan mission to provide drinking water

For details, click on the link below: Link to the report

Shares of Tata Metaliks Limited was last trading in BSE at Rs. 856.35 as compared to the previous close of Rs. 868.55. The total number of shares traded during the day was 9296 in over 930 trades.

The stock hit an intraday high of Rs. 867.25 and intraday low of 850.00. The net turnover during the day was Rs. 7980186.00.

Source : Equity Bulls


TataMetaliks INE056C01010 Q3FY23 ResultUpdate ICICIDirect