In Q2 2023, Tata Metaliks Sees Healthy EBITDA Margin, Agile Sourcing Offsets Coal Price Surge
Tata Metaliks reports a 16% Q-o-Q revenue boost for Q2 2023, backed by strategic sourcing and operational efficiency, recording ₹755 Crores in revenue and ₹62 Crores in PBT.
JAMSHEDPUR – An agile strategic approach towards sourcing has enabled Tata Metaliks Limited to negate the effects of soaring coal prices, as it unveiled a 16% quarter-on-quarter (Q-o-Q) revenue growth today.
The Kharagpur-based company, a subsidiary of Tata Steel, attributed the upsurge to improved deliveries of Ductile Iron (DI) Pipes which contributed to a remarkable increase in PBT by tenfold compared to the previous quarter.
Manufacturing facilities at Kharagpur recorded a substantial increase in Finished Pipes production, from 73 kt in the first quarter to 81 kt in the second.
In a recent development, one of the company’s Blast Furnaces, post operational overhaul, achieved its full-rated capacity expeditiously.
With regard to larger diameter pipes ranging from 900 to 1200 mm, nearly 30% of the new DI Pipe plant’s sales were comprised of this category.
Managing Director Alok Krishna observed that the robust demand for government water infrastructure projects ensures a healthy order book for DI Pipe for FY’24 and the first quarter of FY’25.
Mr. Krishna also noted that Pig Iron sales are poised to contribute to the company’s topline, following the recommissioning of an overhauled Blast Furnace.
Initiated in 1994, Tata Metaliks has an annual production capacity of approximately 600,000 tonnes of hot metal, with over 350,000 tonnes earmarked for conversion into DI Pipes.
