Tata Sponge Q1 Net Down 83.98% at Rs 7.09 Crore

The company had clocked Rs 44.28 crore net profit in the corresponding period a year ago.

Published: 22nd July 2015 12:21 PM  |   Last Updated: 22nd July 2015 12:21 PM   |  A+A-

By PTI

NEW DELHI: Tata Sponge Iron, an associate firm of Tata Steel, today reported 83.98 per cent plunge in standalone net profit at Rs 7.09 crore for the quarter ended June 30, 2015, due to sharp fall in sales.

The company had clocked Rs 44.28 crore net profit in the corresponding period a year ago.

Income of the company stood at Rs 141.93 crore during the quarter under review, down 26.57 per cent compared to Rs 193.3 crore in the April-June period of the last fiscal, it said ina BSE filing..

Tata Sponge Iron's total expenses also declined to Rs 141.1 crore in the June quarter of the current fiscal, down 4.55 per cent as against Rs 147.83 crore in the year-ago period.

The company said it has disclosed Rs 32.50 crore as "contingent liability" with regard to the bank guarantee (BG) towards a coal block in the wake of a High Court order to keep the BG valid till August 31, 2015 by which the Court had asked the government to take a decision on it.

Coal Ministry in November 2012 had issued notice to the firm for invoking BG towards a block but the Court had granted a stay.

It also said that during the pendency of the matter, the Supreme Court had cancelled allocations of 214 coal blocks including the Radhikapur (East) Coal Block alloted to it in which it had made investments of Rs 180.63 crore as on June 30 this year.

As per the Ministry's directive to furnish expenses by previous allottees, the company said it has submitted the details.

The company's shares were trading 2.75 per cent down at Rs 520.65 per scrip during the morning trade on the BSE.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp