Tata Sponge’s net profit increases above two-folds in Q2 FY17 to INR 16.06 crore against INR 5.70 crore during the same preceding last year, According to company’s report.
Total consolidated income of the company, however it fell by 8% to INR 153.55 crore in the Jul-September quarter from INR 167.51 crore during the same quarter in FY16. It’s total expenses were lower at INR 139.88 crore from INR 169.50 crore earlier.
Tata Sponge is a coal-based merchant sponge iron producer and operates three rotary kilns with an installed capacity of 3,90,000 TPA to produce sponge iron in Bailaipada, Dist- Kendujhar, Odisha.
Tata Sponge Iron Ltd Performance
| Particular | Q2 FY17 | Q1 FY17 | Q2 FY16 | % Q-o-Q | % Y-o-Y |
| Consolidated Income (Crore) | 153.55 | 118.73 | 167.51 | + 29.33 | + 8.33 |
| Profit in (Crore) | 16.06 | 10.55 | 5.7 | + 52.23 | + 181.75 |
| Average Trade Price Index (SteelMint)* | 11,550 | 10,850 | 14,300 | + 6.45 | – 19.23 |
| Iron Ore Movement (Through Rakes) in MT | 111,531 | 96,160 | 144,553 | + 15.98 | – 22.84 |
*Average Prices of Odisha C-DRI price index (70% Lumps, 30% fines) in INR/MT
Source: Company website, SteelMint Research
Tata Sponge considered a large merchant producer in Odisha, east India. On supply prospect, the company covers across north-east regions and sell material through rakes which also makes price competitive advantage.
As per railway movement data tracked by SteelMint, Tata Sponge has increased Iron ore procurement in Q2 (Jul-Sep’16) by approx 16% to 111,531 MT compared to Q1 (Apr-Jun’16) at 96,160 MT.
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