Shares of Tata Sponge Iron
were trading 6% down in late morning trade on Monday after the company’s profit in the third quarter of FY19
dropped 25.5% yoy to Rs26.8cr.
Further, the company's EBITDA stood at Rs30.4cr, down 36.9% yoy, while its EBITDA margin declined 1,080bps yoy to 11.6%.
"EBITDA margin erosion for Q3FY19 is due to a significant rise in raw material cost. Gross margin for the quarter fell 1,092bps yoy due to the rise in raw material costs. Segmental revenue for the quarter stood at Rs248cr (up 24.4% yoy) for the sponge iron segment and Rs17cr (down 16.3% yoy) for the power segment," the company said in a press note after market hours on Friday.
Tata Sponge Iron Ltd's share price is currently at Rs771.85, down Rs47.35, or 5.78%, from its previous close of Rs819.20 on the BSE.
The scrip opened at Rs795.55 and has touched a high and low of Rs795.55 and Rs765.30, respectively. So far, 1,95,374 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs1,261.57cr.