Tata Sponge Q2 net grows two-fold to Rs 22 cr

Tata Steel's associate firm Tata Sponge Iron's net profit has more than doubled to Rs 21.73 crore for the quarter ended September 30, 2011 on account of large savings on raw material.

The Orissa-based company had reported Rs 10.41 crore net profit in the July-September quarter of the last fiscal, it said in a filing to the BSE.

Tata Sponge Iron had consumed raw material worth Rs 121.68 crore during the reporting quarter against Rs 136.44 crore in the year ago period.

Total income of the company, however, remained flat at Rs 173.72 crore during the quarter against Rs 175.39 crore in the corresponding quarter last fiscal.

Tata Sponge has its manufacturing facility at Bilaipada in Orissa. It was initially set up as a joint venture company between Tata Steel and the Industrial Promotion and Investment Corporation of Orissa Ltd (IPICOL).

Tata Steel had bought IPICOL's stake in 1991 and since then Tata Sponge has become an associate company of the steel major.

Tata Sponge Iron's scrip closed at Rs 309.15 apiece at the BSE today, up 0.62% over previous day's closing.