Tata Sponge Iron Ltd, an associate company of Tata Steel, today reported a 22.57 per cent jump in its net profit to Rs 20.58 crore for the quarter ended December 31, 2012, largely on account of higher sales.
The company had reported a net profit of Rs 16.79 crore during the same quarter of the previous fiscal.
Net sales of the company was up nearly 55 per cent to Rs 196.25 crore during the quarter vis-a-vis Rs 126.65 crore of the October-December period of FY'12, it said in a filing to the BSE.
Its expenses also shot up by over 59 per cent to Rs 176.98 crore, while the tax outgo was marginally down at Rs 8.74 crore.
The company, in its filing, also said that it has secured a stay from Delhi High Court challenging an order of the Coal Ministry to encash bank guarantee (BG) of Rs 32.50 crore against the delay in commissioning the Radhikapur coal block.
The coal block was allocated to the company, jointly with Scaw Industries Ltd and SPS Sponge Iron Ltd.
"The company contends that the delay in commissioning of the project is mainly attributable to both Central and State governments in granting permissions/approvals for various critical milestones...
"The company also filed for a stay from the High Court of Delhi against the revocation of the BG by the Ministry of Coal and the company has obtained stay till April 11, 2013 ," it said.
Tata Sponge has also applied for extension of the normative date of production before the government and the application is still pending, it further said, adding that it has not made any adjustments in the financial result pending clearance of its extension application by the government and the court case.
Shares of the company closed today at Rs 308.30 apiece on the BSE, down 1.41 per cent from the previous close.