Higher margins boosted the pig iron (PI) and ductile iron (DI) pipe maker — Tata Metaliks Ltd's net profit to Rs 75.18 crore for the third quarter ended December 2020, a jump of 55 per cent over the corresponding quarter of last year, the company said on Tuesday.
Revenue from operations was Rs 526 crore for the quarter, marginally higher from Rs 518 crore registered in the corresponding period of FY20.
Tata Metaliks Ltd, a subsidiary of Tata Steel, has its manufacturing facilities at Kharagpur, West Bengal. It produces PI and DI pipes. The plant annually produces around 550,000 tonne of hot metal, of which over 200,000 tonne is converted into DI pipes and the rest into PI.
The company's DI pipe deliveries were, however, lower by 19 per cent compared with Q3 FY20. Post the Covid-19 pandemic, the DI pipe industry has been under stress due to slowdown of executable projects.
The company demonstrated robust performance in pig iron division and recorded the highest quarterly deliveries in the last five years.
“The company has delivered excellent results in its pig iron business despite over a month-long shutdown of one of its blast furnaces for capital repairs. Strong focus on operational performance coupled with a buoyant market for pig iron has contributed to the high margins. The DI Pipe expansion project which was moving slowly due to Covid has been put on fast track for completion within the next financial year,” Tata Metaliks, managing director Sandeep Kumar said.
On Tuesday, Tata Metaliks was trading at Rs 824, down Rs 10.40 on Monday on the Bombay Stock Exchange (BSE).