Iron & steel manufacturer firm Tata Metaliks announced Q3FY23 results: Q3FY23: The company recorded revenue from operations of Rs 790 crore and PBT of Rs 12.25 crore. Revenue for the quarter saw a dip of ~10% QoQ caused mainly by lower deliveries of pig iron by ~25% and softening of realization of both pig iron and DI pipe in line with softening commodity prices. Delivery of DI pipe, however, has been improving QoQ and has been higher by ~11% and ~16%, compared to Q2FY23 and Q3FY22 respectively. YoY revenue for the quarter was ~15% higher, compared to Q3FY22 caused mainly by higher deliveries and better realization of DI pipe by ~16% and ~30% respectively. Alok Krishna, Managing Director of Tata Metaliks, said: “Pig iron business was adversely affected by weak health of one of the blast furnaces which had frequent shutdowns and increased costs. The blast furnace has been repaired in early December 2022 and is doing well now. The new DI pipe plant has been ramping up with volumes increasing QoQ and higher volumes are expected to come from it in Q4. Domestic demand for pig iron is expected to firm up in Q4 as utilization levels in several segments like general castings and agriculture are likely to improve. Imported coal price is expected to remain range-bound with the possibility of a marginal uptick in Q4, as indicated by the trend of coal futures. The demand outlook for DI pipes for Q4 is robust in line with the government’s increased outlay through Jal Jeevan Mission for providing drinking water to the population. Q4 is traditionally the best period for DI pipe in terms of project execution on the ground and the company is geared up to meet the high demand through additional volumes from the new DI pipe plant.” Result PDF
Tata Metaliks announced Q2FY23 results: The company recorded Revenue from operations of Rs 877 crore and PBT of Rs 20.13 Crore Revenue for the quarter saw an increase of ~32% QoQ while the increase was 36% over Q2 FY’22 Stable and improved plant performance resulting in higher hot metal production QoQ by ~25%. DI Pipe production also increased QoQ by ~40% as additional volumes became available with the ramping up of the new DI Pipe plant. Realisation of PI saw a QoQ drop of ~11% due to oversupply in domestic market as a result of virtual stoppage of exports post imposition of export duty on PI at 15% from May-22. Realisation of DI Pipe, on the other hand, increased by ~3% compared to Q1. Mr. Sandeep Kumar, Managing Director of Tata Metaliks said: “The Company has been able to bounce back after a weak performance in Q1, with both PI and DIP business delivering much higher volumes than Q1. The new DI Pipe plant has been ramping up well and higher volumes are expected to come from it in Q3. Pig Iron market demand is expected to continue to be under pressure due to oversupply in domestic market although post festive season, demand and utilization levels are expected to be better from Nov’22. Coal price (FOB Australia) is likely to remain range bound with possibility of marginal uptick in Q3 as indicated by trend of Coal futures. The demand outlook for DI Pipes for H2 is robust in line with the Govt’s increased outlay through Jal Jeevan Mission for providing drinking water to the population. H2 is traditionally a much better period for DI pipe with demand picking up and will be supported by additional volumes from the new DI Pipe plant.” Result PDF
Iron & Steel/Interm products firm Tata Metaliks announced Q1FY23 Result : Tata Metaliks Limited reports Financial Results for the quarter ended June 30, 2022 Achieved topline growth of 11% YoY The company recorded Revenue from operations of Rs 666 Crores and PBT of Rs 1.73 Crores for the quarter ended June’22. Revenue for the quarter saw an increase of ~11% YoY over Q1 FY’22 driven by increased realization of both Pig Iron and DI Pipe by ~36 to 40%. However, Sales Volume of Pig Iron & DI Pipe were lower by 23% & 8% respectively on a YoY basis owing primarily to softening of market sentiment of Pig Iron from mid-May onwards. Pig Iron prices also witnessed a sharp drop in market prices after imposition of export duty by the Govt on 22nd May, 2022. On the Raw materials front, coal and coke prices moved up significantly (coke price was up 30% over Q4). Profitability was severely impacted in the quarter owing to the above factors Mr. Sandeep Kumar, Managing Director of Tata Metaliks said: “While DIP business has delivered close to its planned volumes, the Pig Iron business got adversely impacted due to lower production & higher cost arising out of the annual maintenance shutdowns and also on account of operational issues in one of the blast furnaces for much of April and May. Significant increase in coal, coke & consumable prices, continuing drag of old orders (booked in FY21) of DI Pipe and a sharp drop in Pig Iron prices post imposition of 15% export duty on Pig Iron have severely dented our profitability this quarter. The Pig Iron market has stabilized and has shown a slight upward trend since the beginning of July. Coal prices have dropped significantly with Prime hard coking coal having come down from USD 500/t FOB average in May to below USD300/t average in July. All these factors present a positive outlook for Pig Iron business in Q2. Government’s increased investment in water infrastructure is expected to keep the demand for DI Pipes robust, though Q2 is a seasonally weak quarter. Subsequent quarters are expected to be much better with demand of DI Pipe picking up and supported by additional volumes from the new DI Pipe plant.” Result PDF
Conference Call with Tata Metaliks Management and Analysts on Q4FY22 Performance and Outlook. Listen to the full earnings transcript.