Kolkata, July 23 (IANS) Tata Metaliks on Saturday said it posted a 26 per cent rise in net profit to Rs 34.44 crore in the quarter ended June 30, 2016 and has commissioned enhanced capacity of ductile iron (DI) pipe plant in Kharagpur.
The company had posted a net profit of Rs 27.43 crore in the April-June quarter of the previous year.
Its EBITDA (Earnings before interest, tax, depreciation and amortisation) in April-June quarter stood at Rs 61.10 crore, up 28 per cent compared to the same period of the previous year.
The company sold 99,130 tonnes of pig iron (including molten metal) and 39,639 tonnes of DI pipes during the quarter, said a Tata Metaliks statement.
The expansion of the DI pipe plant capacity in Kharagpur has been completed and the new finishing line of the DI pipe plant was commissioned, the statement said.
“The expansion of capacity to potentially 200,000 tonnes per annum will give 50 per cent additional volume to the company’s value-added DI pipe business in the future,” it said.
“The company recorded sustained performance in Q1 of financial year 2016-17 despite extremely challenging market conditions. Successful commissioning of plant’s increased production capacity would significantly enhance its market share,” said the statement, citing Managing Director Sanjiv Paul.
The company said demand for DI pipes remained stable during the quarter and this is likely to persist in the coming few quarters.
However, downward trend in price of DI pipe in the domestic market is continuing due to lower price of input materials and stiff competition from manufacturers.