Shares of Tata Metaliks on Friday declined around 8% after the company reported an over 50% decline in its December quarter net profit due to a rise in total cost.
The stock hit a low of Rs 850 a share and fell as much as 7.76% in intraday. At 10.10 am, the scrip was trading at Rs 894 on BSE down 3% from its previous close.
The firm reported a net profit of Rs 35.88 crore in the quarter against Rs 75.18 crore a year ago. Revenue increased 31% to Rs 689.80 crore, total cost surged 53.28% to Rs 642.83 crore.
Its revenue from the pig iron segment rose 23% to Rs 534.85 crore and revenue from ductile iron pipe grew 57.77% from a year ago to Rs 331.94 crore.
Tata Metaliks has its manufacturing plant in Kharagpur, West Bengal. It produces pig iron and ductile iron pipes and its annual production capacity is 5 lakh tonnes. Out of the total production, it converts 2 lakh tonnes into ductile iron and 3 lakh tonnes into pig iron.