Coal news and updates

Tata Sponge Q3 net plunges 68% to Rs 5.24 crore

Tata Sponge Iron Ltd, on January 21, said its net profit during the third quarter (October-December) of 2015-16 declined by 68.26% to Rs 5.24 crore from Rs 16.51 crore reported in the same period of the previous year on lower revenue realisation due to poor market conditions.

A depressed steel market affected the company’s realisation during the quarter.

The company’s net income during the quarter slipped by 35.44% to Rs 138.89 crore from Rs 215.14 crore in the corresponding quarter of 2014-15.

On a quarter-on-quarter basis, the net profit was down 7.90% from Rs 5.69 crore registered in the second quarter ending September 30, 2015.

The consolidated results for the first nine months from April to December stood at Rs 18.02 crore, down 78.37% from 83.32 crore reported during the same period last year.

Tata Sponge has a capacity to produce 390,000 tons per annum of sponge iron from its three kilns at Balipada in the Keonjhar district of Odisha.