The share price of Tata Metaliks soared 8 percent on Wednesday after the firm turned profitable in the June quarter. It reported a net profit of Rs 94.72 crore in Q1 against a loss of Rs 12.36 crore posted in the same period last year.
Total income in Q1 surged 187 percent to Rs 606.45 crore from Rs 210.99 crore in the year-ago period. Expenses also more than doubled to Rs 471.62 crore during the quarter under review from Rs 227.46 crore a year ago.
The stock rose as much as 8 percent to its day's high of Rs 1,299 per share on the BSE.
According to the company, record sales volumes coupled with strong price realisation, along with stable blast furnace operations, raw materials cost optimisation and higher coal injection have helped the company achieve its best ever quarterly profits.
"Demand for Pig Iron got impacted adversely in Q1 due to Covid second wave as major foundry clusters operated at 30-40 percent capacity. However, the company achieved the highest ever quarterly deliveries on the back of a jump in exports," a company official said.
Tata Metaliks has its manufacturing facilities at Kharagpur in West Bengal which produces Pig Iron and DI Pipes.
The plant annually produces around 5,50,000 tonnes of hot metal, out of which over 2,00,000 tonnes is converted into DI Pipes and the rest into Pig Iron.
(With inputs from PTI)