Tata Sponge Iron at record high on robust Q4 results

The Q4 consolidated net profit jumped more than four-fold to Rs 40.50 crore on the back of strong operational performance.

Tata Sponge Iron has soared 14% to Rs 549 after reporting an over four-fold jump in consolidated net profit at Rs 40.50 crore for the quarter ended March 31, 2014 (Q4), on the back of strong operational performance. The Tata group company had posted a profit of Rs 9.29 crore in year ago quarter.

Total operational income of the company increased 12% year-on-year (yoy) to Rs 237 crore, while total expenditure declined 7.86% to Rs 182 crore over the previous year.

The company’s EBITDA or operating margin increased to 25.06% from 8.8% during the corresponding quarter of the previous year.

Meanwhile, the board has recommended a dividend of Rs 10 per equity share (100%) share for the year ended March 31, 2014.

The stock opened at Rs 505 and touched a high of Rs 554 on the NSE. A combined 1.19 million shares already changed hands so far as against an average sub 0.50 million shares that were traded daily in the past two weeks on the NSE and BSE.