Tinplate Company of India rose 3.04% to Rs 159.30 after standalone net profit surged 198.9% to Rs 46.45 crore in Q3 December 2019 as against Rs 15.54 in Q3 December 2018.
The scrip rose 6.15% to hit the day's high at Rs 163.95, its highest intraday level since 19 July 2019.Profit before tax (PBT) rose 10.5% to Rs 29.45 crore in Q3 December 2019 from Rs 26.65 crore in Q3 December 2018. Net sales fell 14.1% to Rs 494.69 crore in Q3 December 2019 from Rs 576.19 crore in Q3 December 2018.
Net profit surged on account of lower expenditures and taxes. Total expenditure shrunk 16.6% to Rs 492.69 crore in Q3 December 2019 over Q3 December 2018, mainly on account of falling raw materials costs.
The cost of raw materials consumed decreased by 23.9% to Rs 362.55 crore in Q3 December 2019 from Rs 476.14 crore in Q3 December 2018. The company's packaging costs fell 10.9% to Rs 9.83 crore in Q3 December 2019 over Q3 December 2018.
Total tax expenses tumbled 37.2% to Rs 6.88 crore in Q3 FY20 from Rs 10.96 crore in Q3 FY19. The firm has also written back deferred taxes to the tune of Rs 23.88 crore in the third quarter of FY20.
Tinplate Company of India is an associate of Tata Steel. The company manufactures various grades of electrolytic tinplates, tin-free steel sheets and full hard cold rolled sheets (FHCR) used for metal packaging. Tinplate Company is in the business of providing cost effective metal packaging solutions for processed edible products.
Currently, the stock is trading 5.12% below its 52-week high of Rs 167.9 hit on 15 Apr 2019. It is 82.26% above its 52-week low of Rs 87.4 hit on 23 Aug 2019.
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