Tata Sponge Iron Ltd reported a 49.47% rise in standalone net profit to Rs 12.81 crore in the fourth quarter (Q4) ended March 2016 from Rs 8.57 crore reported in the same period of the previous year because of increase in net sales and lower costs of raw materials consumed.
Sales edged up to Rs 140.37 crore in the last quarter of 2015-16 from Rs 138.78 crore in Q4 of the previous year, as per an official statement given to the Bombay Stock Exchange.
The cost of raw materials consumed decreased in Q4 of 2015-16 on a y-o-y basis to Rs 85.74 core to Rs 111.40 in 2015.
The 49.47% profit rise and growth in sales are a significant indicator because the overall sponge iron market is suffering from lack of demand.
However, the annual net profit for the entire 2015-16 stood at Rs 30.83 crore, decreasing sharply from Rs 9,189 crore reported in the previous fiscal. Annual sales also decreased 25.37% to Rs 571.79 crore (Rs 766.23 crore).