Tata Metaliks stock spikes, quickly recedes after Q2 net profit triples on a falling revenue

The profits have risen despite lower revenues on declining material costs.

Moneycontrol News

October 17, 2023 / 15:20 IST

Tata Metaliks

26 Aug, 2025 12:21

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Tata Metaliks shares spiked as much as 6 percent at the day’s high on October 17, after the Tata Steel arm reported its fiscal second quarter net profit tripled year-on-year. At 2.50 pm, Tata Metaliks stock was trading up 0.9% at Rs 959, falling from the intra-day high of Rs 1,006.

Tata Metaliks reported its Q2 FY24 net profit rose to Rs 44.2 crore from Rs 14.3 crore from the previous year, mainly due to lower raw material costs. However, revenues fell 14 percent year-on-year to Rs 755 crores from Rs 877 crore in the previous year. The company’s material costs have fallen to Rs 418.62 crores from Rs 634.49 crores in the same period a year ago.

Tata Metaliks produces Pig Iron (PI) and Ductile Iron Pipes (DIP). Pig iron is used in making of steel, alloy and foundries. It is also used for automotive castings and other iron based castings. Ductile Iron pipes are used in the construction of underwater pipelines, mainly for support prices, waste water applications and trenchless instalments.

In September 2022, Tata Steel board approved the merger of six of its subsidiaries. In February 2023, Tata Steel Managing Director and CEO T V Narendran said the merger of the six subsidiaries along with Angul Energy will be completed in 2023-24 fiscal year. Besides Tata Metaliks and Angul Energy, the other subsidiaries are Tata Steel Long Products (TSPL), The Tinplate Company of India, TRF, Indian Steel & Wire Products, and Tata Steel Mining and S&T Mining Company.

Tata Metaliks shares have risen as much as 24% percent in the last six months beating the returns of Tata Steel, which has risen by 18.31 percent in the corresponding period.