Tata Metaliks Q3 Results Review - Performance Likely To Improve, Going Forward: ICICI Direct

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ICICI Direct Report

Tata Metalik Ltd.’s Q3 FY23 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.

Tata Metalik’s revenue was at Rs 790 crore, up 15% YoY but down 10% QoQ. The company’s pig iron sales volumes were at ~63000 tonnes, down 25% YoY.

Ductile iron pipes sales volume was at ~77000 tonnes, up 16% YoY and 11% QoQ. The growth in DI pipe volume was aided by the new plant. DI pipe plant – two (new plant) had a vertical ramp-up wherein production of finished DI pipes touched 25 thousand tonne in Q3 FY23 compared to 13 thousand tonne in Q2 FY23.

Tata Metalik’s Ebitda for the quarter was at Rs 39 crore, down 43% YoY and 5% QoQ. The company’s Ebitda margin for the quarter was at 4.9% compared to 4.7% in Q2 FY23 and 9.8% in Q2 FY23.

Ensuing profit after tax for Q3 FY23 was at Rs 9 crore, down 74% YoY and 34% QoQ.

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