(Photo courtesy: LinkedIn/Tata Metaliks)
Tata Metaliks Ltd on Wednesday reported a sharp fall in net profit to Rs 1.22 crore during the June quarter, mainly on account of higher expenses.
It had reported a net profit of Rs 94.72 crore in the April-June quarter of financial year 2021-22, the company said in a regulatory filing.
in the first quarter of the current fiscal, the company's total income stood at Rs 669.35 crore compared to Rs 606.45 crore in the year-ago period.
During the same period, the expenses climbed up to Rs 667.72 crore from Rs 471.62 crore a year ago.
A subsidiary of Tata Steel, Tata Metaliks has its manufacturing plant at Kharagpur, West Bengal, where the company produces the pig iron and Ductile Iron Pipes (DIP).
"While DIP business has delivered close to its planned volumes, the pig iron business got adversely impacted due to lower production and 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," Sandeep Kumar, Managing Director of Tata Metaliks said in a statement.
He also said that significant increase in coal, coke and consumable prices coupled with continuing drag of old DIP orders booked in FY21 and a sharp drop in pig iron prices post imposition of 15 per cent export duty severely dented the profitability in the June quarter.
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First Published: Jul 13 2022 | 8:39 PM IST