Tata Sponge Iron Q3 Net up 18% at Rs 24.31 cr

Tata Sponge Iron, an associate firm of Tata Steel, today reported 18 per cent growth in its net profit to Rs 24.31 crore during the October-December quarter on the back of lower costs.
The company had reported a net profit of Rs 20.58 crore in the corresponding period of the previous fiscal.
Its net sales, however, declined marginally by 1.53 per cent to Rs 193.25 crore in the last quarter vis-a-vis Rs 196.25 crore of Q3FY'13 due to subdued market conditions, it said in a filing to the BSE.
Its expenditure during the quarter stood at Rs 162.59 crore, amounting to 84.14 per cent of the net sales, in the last quarter. During the third quarter of the last fiscal, the percentage of cost to net sales was 90.18 per cent.

The company further said that it has challenged a Coal Ministry order of November 23, 2012 to encash the bank guarantee of Rs 32.50 crore for delay in commissioning the Radhikapur (East) coal block in Delhi High Court and hearing is in progress.
The block was allocated to the company in February 2006 together with Scaw Industries Ltd and SPS Sponge Iron Ltd.

"The company contends that the delay in commissioning of the project is mainly attributable to both Central and State governments in granting permissions/approvals for various critical milestones," it said.
The Company further said that its application seeking extension of the stipulated date of production on account of delays, is still pending with the Coal Ministry.

"Pending disposal of by the Ministry of Coal (MoC) of the company's application seeking extension of the normative date of production and the disposal of the case before the High Court of Delhi, the amount has been disclosed as a contingent liability in the financial statements for the period ended December 31, 2013," it said.