India: Tata Sponge Reports Fall in Net Profit by 25% in Q3 FY19

Tata Sponge Iron Ltd (TSIL) one of the largest sponge producer in Eastern part of India has released its quarterly results on 12th Jan 2019, in which the company's net profit fall in Q3 Financial year (FY) 2019 that is around 25.53% against same preceding of FY 2018.

In the report, the company's net profit plunged to INR 26.80 Cr in Q3 FY19 as compared to INR 35.99 Cr in the Q3 of FY18, decline by INR 9.19 Cr (25.53%) Y-o-Y.

However the firm's total income reported a surge by 22.41% to INR 276.79 Cr in 2018 from INR 226.10 Cr in the same time frame last year (Oct-Dec). Further, the total expenses reported at INR 235.50 Cr against last year at INR 171.77 crore.

Revenue from sponge iron segment rose to INR 247.97 Cr Q3 FY19 from INR 199.30 Cr in FY18.

Tata Sponge produces high-grade sponge iron that is consistent in quality. The Company has an annual manufacturing capacity of 390,000 tonnes of sponge iron from its 3 kilns. The company's plant is located in Bilaipada, Odisha, East India and the selling material mostly to North-East based Inductions.

YTD Analysis FY18 & FY19 (ended on 31st December)

1. According to the report, company's net profit rose to INR 99.97 Cr in 2018 as compared to INR 94.16 Cr in 2017, rose to INR 5.81 Cr (6.17%) Y-o-Y.

2. The Company's total income also increased to INR 780.69 Cr in 2018 from INR 604.50 Cr in the year-ago period

3. Total expenses of the company were at INR 628.95 Cr during the period under review ended 31st Dec, as against INR 464.28 Cr in the same period last fiscal

4. Revenue from sponge iron segment surge to INR 698.93 Cr in 2018 from INR 531.59 Cr in 2017.