Tata Metaliks Q3 net up 55 per cent to Rs 75 crore

PostCovid, the DI pipe industry has been under stress due toslowdown of executable projects.The company demonstrated robust performance in pigiron division and recorded the highest quarterly deliveries inthe last five years.The company has delivered excellent results in itspig iron business despite over a month-long shutdown of one ofits blast furnaces for capital repairs.

Higher margins boosted the pigiron and ductile pipe maker -- Tata Metaliks Ltd's net profitto Rs 75.18 crore for the third quarter ended December 2020, ajump of 55 per cent over the corresponding quarter of lastyear, the company said on Tuesday.

Revenue from operations was Rs 526 crore for thequarter, marginally higher from Rs 518 crore registered in thecorresponding period of FY20.

Tata Metaliks Limited, a subsidiary of Tata Steel hasits manufacturing facilities at Kharagpur, West Bengal. Itproduces pig iron and DI pipes. The plant annually producesaround 550,000 tonne of hot metal, of which over 200,000tonne is converted into DI Pipes and the rest into Pig Iron.

The company's Ductile Iron (DI) Pipe deliveries were,however, lower by 19 per cent compared to Q3 FY'20. PostCovid, the DI pipe industry has been under stress due toslowdown of executable projects.

The company demonstrated robust performance in pigiron division and recorded the highest quarterly deliveries inthe last five years.

''The company has delivered excellent results in itspig iron business despite over a month-long shutdown of one ofits blast furnaces for capital repairs. Strong focus onoperational performance coupled with a buoyant market for pigiron has contributed to the high margins. The DI Pipeexpansion project which was moving slowly due to Covid hasbeen put on fast track for completion within the nextfinancial year,'' Tata Metaliks, managing director SandeepKumar said.