Tata Sponge Iron Ltd., the direct reduced iron (DRI) producing subsidiary of Indian steel giant Tata Group, has released its financial results for the second quarter and half year, ended on September 30, of the current Indian fiscal year.
Accordingly, in the second quarter of FY 2009-10, Tata Sponge Iron's net sales amounted to Rupees 1.13 billion ($24 million), decreasing by 52.25 percent, while its net profit totaled Rupees 145.9 million ($3.11 million), down 80 percent, both compared to the corresponding period of the previous fiscal year.
Meanwhile, in the first half of the current fiscal year, the company's net sales decreased 33.42 percent year on year, reaching Rupees 2.3 billion ($48.88 million). In the period in question Tata Sponge Iron's net profit amounted to Rupees 308.4 million ($6.56 million), down 69.8 percent year on year.
Orissa-based Tata Sponge Iron has an annual sponge iron output capacity of 390,000 metric tons, and the company has the ability to produce 26 MW of power per year.
According to the figures collected by World Steel Association (worldsteel), India is the largest producer of sponge iron in the world. In September 2009, the country's sponge iron output totaled 1.7 million metric tons, while in the first nine months of the year this amount reached 15.63 million metric tons.