Tata Metaliks has reported that its net profit in the September quarter increased more than three times to ₹44 crore as against ₹14 crore logged in the same period last year.

Revenue from operations increased to ₹755 crore (₹877 crore) in the quarter under review, driven primarily by higher deliveries and realisation of DI Pipe by 19 per cent and 3 per cent, respectively.

One of the Blast Furnaces, which was recently commissioned after operational overhaul and repair, has ramped up to its rated capacity. In DI Pipe Plant 2, production has increased steadily and Finished Pipes production has increased from 73,000 tonnes in Q1 to 81,000 tonnes in Q2. The company’s product portfolio of larger size range, 900-1,200-mm diameter pipes, constituted almost 30 per cent of sales from the new DI Pipe plant.

Healthy orders

Despite increase in coal prices, it controlled rise in input costs with its agile strategic sourcing decisions, which also facilitated maintaining targeted spread between coke cost and DI Pipe realisation.

Alok Krishna, Managing Director, Tata Metaliks, said while DI Pipe business has delivered as per its planned volumes, pig iron sales would also contribute to top line after commissioning of the overhauled blast furnace.

The company’s DI Pipe business has a healthy order-book on the back of robust demand for the government’s water infrastructure projects. The company is geared up and well positioned to meet this demand in the upcoming quarters through additional volumes from the new DI Pipe plant, he added.