Tata Metaliks Limited

Sandeep Kumar

MANAGING DIRECTOR, TATA

Subhra Sengupta

CHIEF FINANCIAL OFFICER,

Sahil Sanghvi

MONARCH NETWORTH CAPITAL LIMITED

rs,

22 Date: April 29, 2022 The Secretary, Listing Department BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001. Scrip Code: 513434 Maharashtra, India. The Manager, Listing Dep

Rs.2,746 crore

ially, I think, if we look at also the overall numbers for the year, we have reached a revenue of Rs.2,746 crores, and the profit before tax of Rs.339 crores, which is the highest level of profits for the compa

Rs.339 crore

numbers for the year, we have reached a revenue of Rs.2,746 crores, and the profit before tax of Rs.339 crores, which is the highest level of profits for the company. The second highest or the previous best

Rs. 307 crore

ighest level of profits for the company. The second highest or the previous best was last year at Rs. 307 crores. But this also includes sale of land from our Maharashtra asset which was lying with us for quit

Rs.30 crore

ich we had discontinued, almost about 9 to 10 years back. So, there was a windfall gain of almost Rs.30 crores to Rs.31 crores coming in from there. So, overall if you look at the profit before tax is more o

Rs.31 crore

ntinued, almost about 9 to 10 years back. So, there was a windfall gain of almost Rs.30 crores to Rs.31 crores coming in from there. So, overall if you look at the profit before tax is more or less similar t

Rs1

s similar to what we had last year, which is, it comes to about slightly better than last year by Rs1 or 1.5 crores. If you look at the sectoral performance, and just the highlights, we have the highe

1.5 crore

ar to what we had last year, which is, it comes to about slightly better than last year by Rs1 or 1.5 crores. If you look at the sectoral performance, and just the highlights, we have the highest ever op

Rs. 50,000

tonne, today or rather in the month of March, the prices of coal, average prices were upwards of Rs. 50,000 per tonne, compared to let's say less than Rs40,000 in the previous quarter. Coke prices crossed R

Rs40,000

ces of coal, average prices were upwards of Rs. 50,000 per tonne, compared to let's say less than Rs40,000 in the previous quarter. Coke prices crossed Rs. 60,000 per tonne. So, both coal and coke had a hu

Rs. 60,000

per tonne, compared to let's say less than Rs40,000 in the previous quarter. Coke prices crossed Rs. 60,000 per tonne. So, both coal and coke had a huge impact. Then, though the Pig Iron prices al

15%

because of the government regulation, which came in for increasing the royalty on iron ore from 15% to 37.5%, for fines and for lumps, it went up from 15% to 52.5%. So, if you buy from a captive mi

“I missed, one important point, is that the expansion project, the first phase which we were supposed to commission by March, April, is actually under commissioning.”

“And the second phase would then get commissioned by let's say, early next year.”

“So, can we expect, in the case which you mentioned can we expect the Pig Iron segment margins to return back to the level it were in like quarterback?”

“Yes, so Pig Iron margins will be absolutely robust.”

“Once your second plant of DI is online, and then we can that we will be, having only capacity to merchant sell around one 100,000 of metric tonne of Pig Iron.”

“Because both the blast furnaces have been misfiring for the last six months, one is up for major repair, it is used, it has reached it campaign life, end of campaign life, and therefore we don‟t expect much, we are not able to push it.”

“Saket, what I have said for the growth CAPEX it will be Rs.”

“100 crores, which is pending and which will be done in FY23.”

“100 crores and also the sustenance CAPEX, a lot we are spending on the digital automation and also another cost related project, yet another say Rs.”

“So, all put together will be spending in the region of Rs.”

Sandeep Kumar

38

Subhra Sengupta

26

Saket Kapoor

18

Sahil Sanghvi

17

Ashu Patel

5

Shubham Agarwal

5

Akhil Hazari

5

Dhaval Joshi

4

Vikas Singh

4

Kartik Arya

4

Sahil Sanghvi

Good evening, everyone, and welcome to the Tata Metaliks Q4FY22 Earnings Conference Call hosted by Monarch Network Capitals. Just a reminder that all participant lines are in listen-only mode right now and muted, and request you to keep it on mute for a proper conference call to happen. And after the initial remarks from MD Sir, we will open the floor for questions. The manner that we will follow through is that you shall have to raise your hand, and I will unmute you, and you can go ahead with the question. I request to limit the questions to three, so that everyone gets a chance. Over to you Sandeep Sir, for the introductory remarks. Thank you.

Sandeep Kumar

Welcome to all the investors, the analysts. Thank you very much for joining the call. I think the quarter 4 results of Tata Metaliks has been a bit of a mixed bag. While we have achieved, I would say a higher profitability compared to Quarter 3, but we could have done much better. And I will explain to you the reasons for that. Essentially, I think, if we look at also the overall numbers for the year, we have reached a revenue of Rs.2,746 crores, and the profit before tax of Rs.339 crores, which is the highest level of profits for the company. The second highest or the previous best was last year at Rs. 307 crores. But this also includes sale of land from our Maharashtra asset which was lying with us for quite some time, and which we had discontinued, almost about 9 to 10 years back. So, there was a windfall gain of almost Rs.30 crores to Rs.31 crores coming in from there. So, overall if you look at the profit before tax is more or less similar to what we had last year, which is, it co

Subhra Sengupta

You have covered everything, but the price of other commodities like zinc, magnesium that has also got like haywire in last six months, and that DIP conversion cost, all raw material cost has got a huge push. And the coal maybe the highest impact, but the other also got a substantial impact of another say Rs. 10 crore to Rs.15 crore kind of. Other things you have covered.

Sahil Sanghvi

Thank you. So, now investors, whoever want to ask a question, they can just press the Raise Hand button, and I will unmute them and they can go ahead one after the other. Yes, Dhaval Joshi, you may go ahead and please ask your question.

Dhaval Joshi

There is a couple of questions from my side, first, can you give us the trajectory of how the DI Pipes sales would be for FY23? And from when or which quarter, we could see better realizations in terms of the higher price contract to flow in, to impact the profitability.

Sandeep Kumar

I missed, one important point, is that the expansion project, the first phase which we were supposed to commission by March, April, is actually under commissioning. And we should start commercial production by next month. Despite the fact that the overseas engineers are not able to come in to India, because of the COVID related visa restrictions, and these are primarily from China. So, they face the maximum problem, currently they are undergoing, they are also facing this wave of COVID. We are actually using augmented reality, a digital technology to commission the plant. And different equipments have already been commissioned, the rest are under process. So, let's say sometime next month, if we start production, then if we did, let's say about 230,000 to 240,000 tonnes of DI Pipes, this year, then in FY23, we should be able to do, let's say anywhere between 280,000 to 300,000 tonnes or even more, depending on how fast we commission and stabilize the plant. And the second phase would t