Tata Sponge Iron has rallied 11% to Rs 344 after more than doubling its net profit at Rs 21.73 crore for the quarter ended September 2011 on account of large savings on raw material. The company had reported a net profit of Rs 10.41 crore in the corresponding quarter of previous fiscal.

The raw material cost declined 11% to Rs 122 crore during the reporting quarter, as against Rs 136 crore in the year ago period. However, total income of the company fell marginally by 1% to Rs 174 crore from Rs 175 crore during the recently concluded quarter.

The counter has seen a huge jump in trading volume today with a combined 178,526 shares changing hands till 0955 hours, as against an average less than 10,000 shares that were traded daily in past two weeks.