India: TATA Metaliks pig iron sales decline q-o-q in Q4

TATA Metaliks Ltd (TML), India's one of the major foundry grade pig iron manufacturers has released its quarterly results, ending on 31 Mar'20.

The company's pig iron sales fell by 8% q-o-q to 79,487 t in Q4FY'20 against 86,189 t in Q3FY20. However on y-o-y basis the same surged by 14% y-o-y in Q4 FY'20 compared to 69,574 t in Q4 FY'19.

Mr. Sandeep Kumar, Managing Director of TML said "Significantly improved blast furnace performance and excellent DI Pipe plant operations with strong cost focus coupled with increase in market prices helped the company to improve the operating margin to around 24% in Q4 from 16% in Q3 FY '20."

Also added, there remains uncertainty on the demand front owing to Covid-19 pandemic and its full impact is not fully ascertainable; the Pig Iron business is seeing the effects of the lockdown with most foundries struggling at 50-60% capacity owing to labour and demand constraints.

Additionally the manufacturers Ductile Iron (DI) Pipe sales for the quarter was 25% lower compared to Q4 FY'19 due to disruption in operation and sales in Mar'20 but marginally (1%) higher than Q3 FY'20.

Profit after tax (PAT) rose in Q4 FY'20

TML profit after tax (PAT) moved up to INR 77.04 crore during the quarter ended 31 Mar'20 compared to INR 45.91 crore during Q3 FY'20 & INR 64.35 crore in Q4 FY'19.

-- TML has kept its foundry grade pig iron prices firm for Jun'20 deliveries at around INR 29,500 ($388)/t ex-plant, Kharagpur, eastern India.

Performance Highlights:
Figures in Rs. Cr unless specified