Tata Metaliks Limited (“TML”) on October 27, 2017, declared its Financial Results for the second quarter of FY’18. TML recorded a Turnover of Rs.451 Crores and Profit after Tax of Rs.33.55 Crores for the quarter ended September 30, 2017. For the half year ended September 30, 2017, TML recorded a Turnover of Rs.860 Crores and Profit after Tax of Rs.64.17 Crores.

Performance Highlights:

All figures in Rs. crores unless specified

• Drop in sales of DI Pipe in the current quarter compared to previous quarter was due to two main reasons: 1) lack of clarity on tax impact post GST implementation (most of the DI pipes for projects were earlier exempt from excise duty) and 2) Monsoons - work at project sites are usually impacted because of rains.
• Revenue from pig iron sales in Q2 FY’18 was 30% higher than Q1 FY’18 as a result of rising pig iron prices in August and September on the back of higher international coke prices, as also due to improved availability of Pig Iron volumes due to modernization of one of the blast furnaces. 
• EBITDA increase in Q2 is mainly on account of much higher sales of pig iron as also due to improved spread between coke price and Pig Iron prices, coupled with improved cost efficiencies.
• Coal and coke prices have started softening in Q3 which should help the company reduce its costs but there could also be pressure on the pig iron market. Also, the benefits from 10 MW captive power plant which is operating at 100% capacity is expected to mitigate the impact of falling commodity prices.

Managing Director’s Comments
Mr. Sandeep Kumar, Managing Director of Tata Metaliks Limited said: “The Company's focus on achieving cost leadership through structural cost reduction projects are helping it deal with market hiccups arising out of volatility in commodity prices and uncertain events like GST. The outlook for H2 looks positive with expected demand pick-up after the monsoons and major festivals but any fall in pig iron prices could be a dampener.”

Disclaimer
Statements in this press release describing the Company’s performance may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred or implied. Important factors that could make a difference to the Company’s operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in or due to the environment, Government regulations, laws, statutes, judicial pronouncements and/or other incidental factors.