The company had registered a net profit of Rs 15.43 crore in the corresponding period a year ago.
On a consolidated basis, net sales of the company increased marginally to Rs 1076 crore during the quarter as against Rs 965 crore in the same period of previous year.
The specialised steel market was still subdued as demand was yet to pick up, Usha Martin chairman Prashant Jhawar said.
Dumping by Chinese steelmakers was adding to the woes, he told reporters here on Saturday after a meeting of the company's board.
The company's performance was expected to improve from the next quarter as the management had taken steps in this regard, vice chairman Rajeev Jhawar said.
The company had made a provision of Rs 8 crore per quarter for paying the coal cess imposed by the Centre.
Total accumulated loss of the company stood at Rs 149 crore.