Tata Metaliks stock slips 8% post Q1 earnings

Shares of Tata Metaliks slipped over 8 percent today after the firm reported a 98 per cent crash in Q1 net profit. Stock of Tata Metaliks fell 8.17 per cent intraday to Rs 645 against the previous close of Rs 702.35 on BSE. Tata Metaliks stock opened with a loss of 5.74 per cent at Rs 662 today. The share of Tata Steel's subsidiary was trading lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

The stock has slipped 46.67 per cent in a year and fallen 21 per cent in 2022. Total 0.22 lakh shares of the firm changed hands amounting to a turnover of Rs 1.46 crore on BSE. Market cap of the firm fell to Rs 2,101 crore.

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Tata Metaliks reported a 98.71 per cent crash in its net profit to Rs 1.22 crore for the quarter ended June 2022. The company had clocked Rs 94.72 crore net profit during March-June period of the preceding fiscal.

However, sales in Q1 rose 10.51 per cent to Rs 666.37 crore compared to Rs 602.97 crore in the year-ago period. During the same period, the expenses climbed to Rs 667.72 crore from Rs 471.62 crore a year ago.

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

Tata Metaliks is a subsidiary of Tata Steel and has its state-of-the-art manufacturing plant at Kharagpur, West Bengal which produces pig iron and ductile iron pipes. The plant's annual hot metal production capacity is 500,000 tonnes out of which 200,000 tonnes is converted into Ductile Iron (DI) pipes and 300,000 tonnes into pig iron.