Tata Sponge Iron reports 36% slide in Jan-Mar profit
New Delhi: Tata Sponge Iron on Monday reported a 36 percent 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 percent 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 on Monday settled at Rs 294.90 apiece, up 0.91 percent over the previous closing in the BSE.