Tata Sponge Iron reports 39 per cent fall in April-June net profit

NEW DELHI: Tata Sponge Iron Ltd today reported a 39 per cent drop in standalone net profit at Rs 18.04 crore for the quarter ended June 30 on the back of lower revenues.

The Tata Steel associate firm had clocked a net profit of Rs 29.71 crore in April-June quarter of 2012-13, it said in a filing to BSE.

Total income from operations of Tata Sponge Iron for the June quarter in FY'14 also came down to Rs 164 crore compared to Rs 189 crore for the same period in FY'13, it said.

Tata Sponge Iron has manufacturing facility at Bilaipada in Odisha. It was initially set up as a joint venture company between Tata Steel and the Industrial Promotion and Investment Corporation of Orissa Limited (IPICOL). However, in 1991, Tata Steel bought out IPICOL's stake and made it an associate firm.

Tata Sponge Iron's total production capacity now stands at 3.9 lakh tonne a year and has 26 MW power generation capacity.

Shares of the company were trading at Rs 263 apiece, down 2.74 per cent, in late afternoon trade on the BSE.