Tata Sponge Iron Ltd, known as largest merchant sponge iron supplier in Odisha with an annual sponge iron production capacity of 390,000 MT has recent released quarterly results for Q2 FY18 end Sept’17.
In this report, the company’s net profit rose sharply to INR 27.61 Cr against Q2 FY17 at INR 16.05 Cr, jumped to INR 11.55 Cr (72%) Y-o-Y.
The firm’s total income also reported a surge by 9% to INR 176.65 crore in July-Sept’17 quarter from INR 162.80 crore in the same corresponding last year. Further, the total expenses fell to INR 135.98 crore in the same quarter as against INR 140.43 crore in the same period last fiscal.
Similarly, revenue from sponge iron segment rose to INR 155.43 crore (Q2 FY18) from INR 139.66 crore (Q2 FY17).
In recent (July 2017), the company had got the clearance from Ministry of Environment Forest and Climate Change to raise sponge production. Currently, the company has 3 kilns which produce sponge iron at 390,000 TPA and enhancement will be from 390,000 TPA to 425,000 TPA.
Production & Sales Performance
Tata Sponge achieved 100% Production in FY17 to 390,000 MT which is an surge of nearly 8.2% as compared to 360,446 MT in FY16.
Further with increase in production, total sales of sponge iron also increase by 7.4% in FY17 to 392,782 MT against 365,815 MT in FY16.
TATA’s sponge plant is based in Bilaipada in Odisha, East India and the selling material largely to North East based Inductions. The company is also involved in exports especially with Nepal.
Leave a Reply