Tata Metaliks hits new high

Tata Metaliks is on a volatile run today. After hitting a new high at Rs.177.40, it slipped into the red at Rs.165.50 and once again bounced back in the green at Rs.171 levels.

The stock hit a high on the back of its exuberant turnaround performance for Q2FY15. Higher revenue, lower costs led to a consolidated net profit at Rs.27 crore v/s loss of Rs.7 crore in previous Q2. Net revenue was up 10% at Rs.349 crore. Raw material cost came down 5% and overall operating cost, as a percentage of total income earned was down from 99% to 87%. Interest cost was down 6%.

This performance was led by very good returns from Pig Iron, whose EBIT jumped up by a whopping 264% while Ductile Iron reported an EBIT of Rs.5 crore v/s loss in previous Q1.