India: TATA Metaliks pig iron sales decline q-o-q in Q1

Tata Metaliks' pig iron sales fell by 60% q-o-q & 55% y-o-y to 32,105 t in Q1 FY '21.

Deliveries of pig iron and ductile iron (DI) pipe were lower by 55% and 49% y-o-y respectively during Q1 FY '21.

Ductile Iron (DI) Pipe sales for the quarter were 50% lower than Q4 FY '20 due to disruption in operations during the lockdown in March-April '20.

"Pig iron demand has shown a healthy pull despite foundries not yet back to their full capacities. DI pipe demand may be under pressure for next few months after which deliveries are expected to pick up. Increased government spending on infrastructure is likely to be the key driver for a gradual recovery in the coming months," said Sandeep Kumar, Managing Director of TML.

Tata Metaliks started ramping up production and sales in June'20.

• TML has increased foundry grade prices by INR 1,200/t to INR 30,700/t & basic grade (Si 1-1.5%) by INR 700/t to INR 27,700/t exw-Kharagpur, eastern India, for Aug '20.
  
  
• TML's profit after tax (PAT) moved down to INR 12.36 crore during the quarter ended June 30, 2020 in comparison with INR 77.04 crore during Q4 FY '20 & INR 19.62 crore in Q1 FY20.
  
  
• Revenue from operations dropped by 58% YoY to Rs 210 crores in Q1 FY '21 from Rs 499 crores in the corresponding quarter a year ago.