India: TATA Metaliks Pig Iron Sales Decline in FY19

Tata Metaliks Limited (TML) recent has declared its yearly results for fiscal year 2019 (FY19) ended on 31st Mar’19, in which the company’s pig iron sales slightly fell by 2.5% Y-o-Y. However on Q-o-Q the same was surge 13% in Q4 FY19.

As per press release, the company’s pig iron sales was about 283,454 MT in FY19 as against 290,902 MT during FY18; down by around 2.5% Y-o-Y.

However, in Q4 FY19 the pig iron sales is reported about 69,574 MT, surged by 13% than the 61,503 in Q3 FY19. In line Q4 FY18 it was learned at 71,229 MT.

Mr. Sandeep Kumar, Managing Director of Tata Metaliks said “Despite operational problems in one of the mini blast furnaces during the quarter, the company has been able to maintain its operating margin at around 14%. The performance of both the blast furnaces has become more stable and with introduction of Pulverised Coal Injection in these furnaces from Q4 FY’19, the Company is looking forward to improved performance of the Pig Iron Division in FY’20.”

In line company’s DI Pipe sales scenario, it reported robust growth as it surged in both Y-o-Y & Q-o-Q basis during FY19.

In FY19, DI Pipe sales reported at 235,671 MT in comparison with 209,475 MT during FY18; increased by 12.5%. Similarly on Q-o-Q basis, where it moved up by more than of 8% to 72,002 in Q4 FY19 as against 66,536 MT in Q3 FY19.

Profit After Tax (PAT) Rose in FY19

Tata Metaliks reported profit after tax (PAT) at 181.89 crore during FY19, which was about 159.18 crore in corresponding period last year.

Similarly, on quarterly basis it moved up to INR 64.35 crore during the quarter ended March 31, 2019 in comparison with 39.63 crore during Q3 FY19 & 54.65 crore in Q4 FY18.

A subsidiary of domestic steel giant Tata Steel, Tata Metaliks, has a manufacturing plant at Kharagpur, West Bengal, where pig iron and ductile iron pipes are produced.

— Recently Tata Metaliks has reduced its pig iron prices by INR 600/MT for Apr’19 deliveries. The latest offers for high silicon(foundry grade) pig iron reported at INR 32,500/MT (USD 465) as against in Mar’18 at INR 33,100/MT (USD 473) ex-plant, Kharagpur, eastern India.