Tata Metaliks hits fresh 52-week high amid a two-fold jump in PAT for Q2FY24

Today, shares of Tata Metaliks which is in the steel industry hit a 52-week high today amid strong financial results for the second quarter of FY24. In Q2FY24 company recorded a robust financial performance with a significant 209.03% year-on-year increase in net profit reaching Rs 44.16 crore compared to Rs 14.29 crore in the corresponding quarter of the previous year. During the second quarter of FY24, the company’s total net revenue showed a decline of 14.03%, from Rs 881.77 crore to Rs 758.05 crore compared to the same quarter in the preceding year.

The increase in net profit was mainly driven by the fact that the company had lower expenses for the cost of materials consumed. In Q2FY24, the cost of materials consumed by the company was Rs 418.62 crore while in Q2FY23, it was Rs 634.40 crore. Sequentially, the net profit for the quarter ending on September 30, 2023, showed an increase of 870.55% from Rs 4.55 crore. However, in Q2FY24, the company’s total net revenue registered a 15.92% increase compared to the previous quarter, settling at Rs 653.94 crore.

Yesterday the scrip closed at Rs 950.05. Today it opened at Rs 950.10 and closed at Rs 959.75, up by 1.02%. Today, shares of the company hit a fresh 52-week high at Rs 1,003.45 and it has a 52-week low at Rs 707.50. The company currently commands a market capitalisation of approximately Rs 3,030 crore, with shares having generated a one-year staggering return of 30.84%.

Tata Metaliks specializes in foundry-grade pig iron manufacturing and distribution. They provide technical services covering charge mix, melting, moulding, and more. Additionally, the company offers various by-products, including slag for cement plants, pig iron scrap, and iron sweepings, serving applications like precision castings, engine blocks, and more.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.