Tata Metaliks Q4: High input costs drag down margins

Mumbai: Tata Metaliks reported a sharp decline in margins for the quarter ending 31 March as higher input costs dented profitability despite increased production.

The company reported a profit of Rs 52 crore, down 31% year-on-year, despite a 22% jump in revenues to Rs 808 crore.

“The significant increase in coal, coke and consumable prices as also continuing drag of old orders (booked in FY21) of DIP (ductile iron pipe) has impacted our profitability,” Sandeep Kumar, Managing Director of Tata Metaliks said in a press statement. “However, profits from the sale of land of discontinued operation has added to the bottom line of the company.”


The Tata Steel subsidiary’s earnings before interest, tax, depreciation and amortisation (EBITDA), more than halved during the quarter to Rs 57 crore. EBITDA margin declined by almost 15 percentage points year-on-year to 7.1%.