Tata Metaliks plunges 7% as Q4 profit, margin see sharp decline

NEW DELHI – Shares of Tata Metaliks tanked 7.2 per cent in early trade on Monday as investors expressed disappointment with the firm’s earnings performance in the fourth quarter of the previous financial year.

The Tata Group firm posted a 30 per cent fall in its net profit to Rs 52.46 crore for the quarter ended March owing to increased expenses. The company had clocked Rs 74.99 crore net profit during the January-March period of the preceding 2020-21 fiscal.

The company’s scrip fell to a low of Rs 802.30 as against Rs 864.25 at the previous close on the BSE. The stock was last trading 6 per cent lower.

According to reports, Tata Metaliks reported a sharp decline in margins for the period under review as higher input costs dented profitability despite increased production.

“The significant increase in coal, coke and consumable prices as also continuing drag of old orders (booked in FY21) of DIP (ductile iron pipe) has impacted our profitability,” Sandeep Kumar, Managing Director of Tata Metaliks said in a press statement. “However, profits from the sale of land of discontinued operation has added to the bottom line of the company.”

The Tata Steel subsidiary’s earnings before interest, tax, depreciation and amortisation (EBITDA), more than halved during the quarter to Rs 57 crore, reports said.

EBITDA margin declined by almost 15 percentage points year-on-year to 7.1 per cent.