Tata Metaliks rose 2.69% to Rs 505 after standalone net profit jumped 19.7% to Rs 77.04 crore on 12.2% fall in net sales to Rs 521.60 crore in Q4 March 2020 over Q4 March 2019.
Standalone profit before tax surged 69.9% to Rs 96.31 crore in Q4 March 2020 as against Rs 56.67 crore in Q4 March 2019. Current tax expenses soared 42.9% to Rs 16.82 crore in Q4 March 2020 as compared to Rs 11.77 crore in Q4 March 2019. The Q4 result was declared before trading hours today, 11 June 2020.
Due to the nationwide lockdown imposed by the Central Government due to COVID-19 pandemic, the impact on the business was partial and temporary as requisite permissions had been obtained by the company in May 2020 to resume manufacturing operations. Due to the lockdown, the production at the company's plant could not be carried out from 28 March 2020 to 12 May 2020. Tata Metaliks anticipates that the current economic environment would result in lower demand in FY20. However, the firm is expected to ramp up production from May 2020 with steady increase in operational levels.
The board has recommended a dividend of Rs 2.50 per equity share for financial year 2019-20
Meanwhile, Sandeep Kumar has been re-appointed as the managing director of the company for a further period of 3 years with effect from 1 July 2020.
Tata Metaliks manufactures pig iron and ductile iron pipes.
On the technical front, the stock's RSI (relative strength index) stood at 63.718. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading between its 50-day moving average (DMA) placed at 418.48 and its 200-day moving average (DMA) placed at 534.89.
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