Tata Metaliks reported on Tuesday that it had clocked Rs. 94.72 crores in net profit for the June quarter. It had suffered Rs. 12.36 crores in losses in this period last year.
According to its financial records, Tata Metaliks income in April – June quarter jumped to Rs. 606.45 crores from Rs. 210.99 last year. Expenses in this quarter stood at Rs. 471.62 crores as compared to Rs. 227.46 crores in the same period the previous year.
Sandeep Kumar, Managing Director of Tata Metaliks, said that the DI pipe business suffered substantial losses primarily due to the COVID restrictions by state governments.
Moreover, demand for pig iron was also impacted as major foundry clusters had to function at only 30-40% of their actual capacity.
However, the demand for ductile iron pipes remained significant due to the increase in allocation for the country’s water infrastructure in this year’s Union Budget.
On top of that, a spike in exports has helped Tata Metaliks provide the most significant quarterly deliveries. Besides that, the following factors were responsible for Tata Metaliks best-ever quarterly profits:
Tata Metaliks shares registered a 6.54 % jump after the Q1 results were published. Its stocks are traded at Rs. 1280.65, which was up by Rs. 78.60. The stocks reached an intraday high of Rs. 1,299 and an intraday low of Rs. 1,230.
Experts feel that although Tata Metaliks stock has given a four-fold return during this period, the best is yet to come. Case in point, the stock had entered a consolidation phase after it touched a record high in early May.
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Rs. 134.83 crores
Rs. 519.44 crores in Q1 June 2021
Rs. 225.54 crores
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