Tata Metaliks reports muted performance in Q1FY23 on plant shutdowns, muted demand, higher raw material costsTATAMETALI - 1010 Change: 11.20 (1.12 %)
News: For Q1FY23, Tata Metaliks (TML) reported a topline of Rs 666 crore, up 11% YoY but down 18% QoQ. EBITDA for the quarter was at Rs 24 crore, down 84% YoY, 58% QoQ. Ensuing PAT for the quarter was at Rs 1 crore, down 99% YoY and 98% QoQ.
Views: Tata Metaliks (TML) reported a muted performance in Q1FY23 on account of plant shutdown, muted demand and higher raw material costs. During the quarter, pig iron sales volume was at 68000 tonnes, down 24% YoY, 21% QoQ. Pig iron business was adversely impacted by muted demand from mid-May 2022 onwards. Pig iron division was also impacted by annual maintenance shutdowns and operational issue in one of the blast furnace for much of April 2022 and May 2022. Ductile iron pipe sales volume for Q1FY23 stood at 46000 tonnes, down 8% YoY, 33% QoQ. TML’s EBITDA margin for the quarter also came in muted at 3.6% (down 2190 bps YoY, 340 bps QoQ), primarily due to higher raw material costs. During the quarter, blended raw material costs per tonne were at Rs 40155/tonne, up 85% YoY, 11% QoQ.