Tata Metaliks is a big gainer today, figuring among the top five gainers on the BSE. The stock opened 2.5% higher at Rs.1231 and rose to an intraday high at Rs.1299, up over 8%. Its 52-week high is at Rs.1374.
The market has reacted positively to its Q1FY22 earnings. A 187% (YoY) rise in revenue from operations at Rs.603 crore and a higher price realization helped the company end the quarter with a net profit of Rs.95 crore v/s loss of Rs.12 crore in previous Q1. Sequentially, the net profit has gone up 27%.
Revenue from pig iron rose 276% and that of ductile iron pipe was up 86%. In terms of EBIT, it is the turnaround in pig iron which boosted the bottomline.
The company’s interest outgo for the quarter is less than Rs.2 crore and that for entire FY22 was a little over only Rs.5 crore.
The company said, “Record sales volumes coupled with strong price realisation, along with stable blast furnace operations, raw materials cost optimisation and higher coal injection have helped the company achieve its best ever quarterly profits.”