Shares of Tata Metaliks which makes foundry grade pig iron, fell as much as 5.77 per cent to intraday low of Rs 449.95 on account of profit-booking after the company reported over three fold rise in net profit in June quarter on a year on year basis.
Tata Metaliks, a subsidiary of Tata Steel on Saturday reported that its standalone net profit came in at Rs 22.42 crore compared with Rs 7.38 crore in the year ago period.
The jump in Tata Metaliks profits has come on the back of a decline in its cost of raw materials, which fell 22 per cent annually to Rs 137 crore as against Rs 176 crore in the corresponding quarter of last financial year.
Its total standalone income declined by 5 per cent to Rs 245 crore in the April-June quarter of the current fiscal from Rs 258 crore during the same quarter of 2015-16.
Meanwhile, the company has pumped in Rs 65 crore to enhance its DI (ductile iron) pipes' capacity to 2,00,000 TPA at Kharagpur, a step that would help to boost sales and bottomline.
Shares of Tata Metaliks have outperformed the benchmark indices by surging 275 per cent in the first quarter of current financial year compared with a gain of 7 per cent in the Nifty during Q1.
Tata Metaliks ended 4.17 per cent lower at Rs 458.90.
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