Tata Metaliks plunges 8% after poor set of numbers in Q1

New Delhi: Shares of Tata Metaliks plunged more than 8 per cent during the early trading hours on Thursday after the company reported a flop show in June 2022 quarter.

The producer of pig iron and ductile iron pipes reported a sharp fall in net profit to Rs 1.22 crore during the June quarter, mainly on account of higher expenses. Its net profit stood at Rs 94.72 crore in the same quarter the previous year.

Following the development, shares of Tata Metaliks plunged more than 8 per cent to Rs 645 before recovering to Rs 668.55 at 9.50 am. The scrip had settled at Rs 702.35 on Wednesday.

In the first quarter of the current fiscal, the company's total income stood at Rs 669.35 crore compared with 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 on yearly basis.

Shares of Tata Metaliks have disappointed investors in the last one year as the stock plunged about 50 per cent in that period. Even in the last six months, the stock has dived about 25 per cent.

Tata Metaliks is a subsidiary of Tata Steel, whose manufacturing plant is located at Kharagpur, West Bengal. According to the company management, higher input costs significantly lifted the company's expenses.

The plant's annual hot metal production capacity is 5,00,000 tonnes out of which 2,00,000 tonnes are converted into Ductile Iron (DI) pipes and 3,00,000 tonnes into pig iron.