Tata Sponge up 10%
Tata Sponge Iron is on a roll today. The stock is currently up 10% at Rs.705, with an intra day high at Rs.716.80, close to its 52-week high hit on 1st July’14 at Rs.721.80.
The stock is the limelight today post its Q1FY15 performance which was declared yesterday after market hours. The company posted a whopping 144% (YoY) jump in net profit at Rs.44 crore though sequentially the rise is more muted, up 10%. A 20% rise in net sales at Rs.193 crore, a tight leash on operating costs – it was at 73% of total income in current Q1 compared to 88% in Q1FY14. The other income of Rs.10 crore v/s Rs.7 crore in previous Q1 also helped the bottomline. Interestingly, its interest outgo for the quarter has come down from 3 crore in Q4 to Rs.83 lakh. Its interest cost for FY14 stood at Rs.13 crore, indicating manageable levels of debt.