Tata Sponge Iron reports 36% slide in Jan-Mar profit

Tata Sponge Iron today reported a 36% decline in standalone net profit for January-March quarter at Rs 9.36 crore despite a rise in total income.

The company, which is a Tata Steel associate firm, had clocked Rs 14.65 crore net profit in January-March quarter of 2011-12, it said in a BSE filing.

Total income of the company increased to Rs 211.38 crore during the quarter from Rs 183.74 crore a year ago.

The dip in net profit is mainly due to higher expenses which went up to Rs 197.07 crore from Rs 162.88 crore a year earlier.

Expenses were high because of the higher spend on raw materials at Rs 152.41 crore from Rs 131.12 crore during the January-March quarter of 2011-12.

Year-on-year basis, Tata Sponge Iron's net profit rose by nearly 13% to Rs 85.43 crore from Rs 75.68 crore a year ago. Total income also increased to Rs 795.76 crore from Rs 633.91 crore.

Shares of the company today settled at Rs 294.90 apiece, up 0.91% over the previous closing in the BSE.