Tata Metaliks QoQ results drop; BSE revises circuit limit

Tata Metaliks, a subsidiary of Tata Steel is a manufacturer of foundry grade pig iron in India. The company has posted its quarter ended June 2016 results with mixed topline and bottomline numbers.

The stock of Tata Metaliks has closed marginally down at Rs 478.85 on July 22 with tremendous volatility. Earlier the stock has risen nearly 47 per cent in just 3 consecutive sessions. Recently, BSE has revised the circuit limit of Tata Metaliks to 10 per cent. On the whole, the stock has witnessed literally a straight upside since February 2016 and is currently trading at its all-time high.

The consolidated revenues of Tata Metaliks have come in at Rs 333.20 crores for Q1FY17 as against Rs 366.55 crores in the previous quarter. During the quarter company saw negative inventories of Rs 7.52 crores while increase in employee expenses by 9.6 per cent to Rs 19.61 crores.

Segment wise revenues from Pig Iron have dropped 2.8 per cent to Rs 244.92 crores as against Rs 252.03 crores in the previous quarter. Revenues from sale of Ductile iron pipe stand at Rs 176.44 crores from 212.03 crores, a decrease of 16.8 per cent. Inter segment revenues have come in at Rs -87.01 crores.

Company’s EBITDA too has dropped 18.9 per cent from Rs 74.71 crores to Rs 60.57 crores for Q1FY17. During the quarter company has seen a drop in interest payment by 51.5 per cent to Rs 8.27 crores.  Yet net profits for Q1FY17 have come in at Rs 34.44 crores as against Rs 38.46 crores for Q4FY16, with a decrease of 10.5 per cent.

Considering year on year numbers, Tata Metaliks has given revenues in line with the corresponding quarter of previous year; while net profits have risen by 25.6 per cent in Q1FY17 from Rs 27.43 crores in Q1FY16.