Tata Sponge Iron net down 29% in Jul-Sept qtr

Tata Sponge Iron today reported 28.8% dip in net profit at Rs 18.33 crore for the quarter ended September 30 mainly on lower total income.

The company's net profit in the same quarter of the last fiscal was Rs 25.77 crore, the company said in a BSE filing.

The total income from operations of the company during period came down to Rs 182.80 crore, registering a drop of 6.5%.

Tata Sponge Iron's total income from operations during the corresponding quarter of the previous financial year was Rs 195.58 crore, it said.

The total expenses of the company came down to Rs 165.34 crore, over Rs 167.54 crore in the same period in FY'13.

The company further said that it has received a notice from the coal ministry last year for encashment of bank guarantee (BG) of Rs 32.5 crore on the ground that there was a delay in commissioning of Radhikapur coal block alloted to the company along with SPS Sponge Iron Ltd and Scaw Industries Ltd.

The company said that the delay in the commissioning of the project is "mainly attributable to Central and State governments in granting permission/approvals for various critical milestones."

"The company has moved to Delhi High Court against the invocation of BG by the Coal Ministry and the hearing is in progress."