Tata Sponge Profits Decline in Q1

Tata Sponge Ltd, India’s top ten sponge producer with an annual capacity of 390,000 MT, has reported a sharp decline in profits in  Q1 FY16.

The company’s net profit for the quarter has plunged almost 84% to INR 7.09 crore when compared with INR 44.28 crore in the corresponding quarter a year ago. Total income has also declined by over 30% from INR 141.94 crore to  INR 203.12 crore.

Indian steel industry has under-performed in first quarter of FY16 against same period during previous financial year. The reason behind low performance are declining steel prices in global market and rising steel import to India.

Indian steel prices will remain under pressure for next few months due to seasonal slowdown. However, with iron ore production increasing in the country, steelmakers will benefit but impact will be noticeable in third quarter.

How Indian Steel Performed in Q1 FY15 Vs Q1 FY16

Commodity

Delivery

Size/Grade

Unit

Q1 FY15

Q1 FY16

 % Change

Remarks

Prices

Iron Ore

NMDC (Chhattisgarh)

Lumps, 6-40mm, 65%

INR/MT

4,470

3,050

-32

Excluding Royalty

Iron Ore

NMDC (Chhattisgarh)

Fines, -10mm, 64%

INR/MT

2,990

1,960

-34

Excluding Royalty

Iron Ore

CIF,China

Fines, 62%

USD/MT

105

58

-45

 

Pellets

Ex- Barbil

6-20mm,63%

INR/MT

7,350

4,750

-35

Basic Prices, Loaded to Wagons

Coking Coal

FOB Australia

Premimum HCC

USD/MT

113

88

-22

 

Scrap

Ex-Mumbai

HMS 80:20

INR/MT

25,900

20,700

-20

Basic Prices, Excise and VAT Extra

Scrap

CIF, Mumbai

HMS 80:20 (Europe)

USD/MT

385

275

-29

 

Pig iron

Ex-Durgapur

Steel Grade

INR/MT

25,250

18,400

-27

Basic Prices, Excise and VAT Extra

Pig iron

FoB Black Sea

Steel Grade

USD/MT

380

258

-32

 

Sponge Iron

Ex- Raipur

FeM 80 (+/-1)

INR/MT

22,100

17,000

-23

Basic Prices, Excise and VAT Extra

Billet

Ex- Mumbai

100*100mm

INR/MT

33,300

27,800

-16

Ex- Works, Excise and VAT Extra

Billet

FOB Black Sea

125*125mm

USD/MT

495

365

-26

 

Rebar

Ex-Mumbai

12mm

INR/MT

39,200

30,800

 -21

Ex- Works, Excise and VAT Extra

Wire Rod

Ex-Raipur

5.5mm

INR/MT

36,000

29,700

-18

Ex- Works, Excise and VAT Extra

HR Coil

Ex-Mumbai

2.5mm, IS 2062

INR/MT

43,500

35,500

-18

Incld Excise of 12.5% ; VAT Extra

HR Coil

CIF India

2mm, SS 400 (China)

USD/MT

550

385

-30

 

HR Plates

Ex- Works

5-10mm

INR/MT

37,500

30,500

-19

Ex- Works, Excise and VAT Extra

CR Coil

Ex-Mumbai

0.9mm

INR/MT

47,500

40,000

-16

Incld Excise of 12.5% ; VAT Extra

SiMn

Ex- Raipur

60/14

INR/MT

54,600

46,700

-14

Ex- Works, Excise and VAT Extra

Production

Crude Steel

India

 

MnT

20.53

22.5

10

 

Iron Ore

India

 

MnT

36.6

38

4

Provisional Data

Coal

Coal India Ltd

 

MnT

108

121

12

Company Reports

Export

Iron Ore

India

 

MnT

1.96

0.04

-98

 

Long Steel

India

 

MnT

0.11

0.1

-7

 

Flat Steel

India

 

MnT

1.06

0.8

-25

 

SiMn

India

 

MnT

0.16

0.16

0

 

FeCr

India

 

MnT

0.11

0.11

0

 

FeMn

India

 

MnT

0.04

0.02

-50

 

Import

Iron Ore

India

 

MnT

0.09

2.14

2,241

 

Coking Coal

India

 

MnT

10.86

11.79

9

 

Non- Coking Coal

India

 

MnT

43.68

47

8

 

Scrap

India

 

MnT

1.27

1.52

20

 

Long Steel

India

 

MnT

0.11

0.19

73

 

Flat Steel

India

 

MnT

1.19

1.86

56

 

MnT – Million Tonnes
Source: SteelMint Research


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