Iron ore major NMDC has reported a 31% fall in net profit to Rs 1,347 crore for the quarter ended March 31 against a net profit of Rs 1,962 crore...
Iron ore major NMDC has reported a 31% fall in net profit to Rs 1,347 crore for the quarter ended March 31 against a net profit of Rs 1,962 crore in Q4 of the previous year due to lower sales and pricing pressure in both domestic and international markets. Iron ore production fell to 7.94 million tonne against 9.96 MT and there was an over 50% reduction in prices. Total income fell by 27% to Rs 2,829 crore from Rs 3,884 crore and net sales fell to Rs 2,799 crore from Rs 3,840 crore during the reported quarter.
For the full year 2014-15, NMDC reported a marginally higher PAT of Rs 6,422 crore against Rs 6,420 crore.
Production stood at 30.44 MT against 30.02 MT, which led to a turnover of Rs 12,356 crore against Rs 12,058 crore, a 2% increase.
Capex for the year 2014-15 stood at Rs 3,136 crore against Rs 2,518 crore. The company has set a capex target of Rs 3,500 crore for this fiscal.
Announcing the results, Narendra Kothari, CMD, said there was a 50% drop in iron ore prices. “It was a difficult year for the industry as there was sluggish demand from the steel industry which is the main consumer of iron ore.
Besides, international and domestic prices have dropped by 50% in the markets. Despite all this, we have achieved the 30 MT mark and hope demand to pick up in this fiscal,” he said.
“We are looking at an ambitious target of achieving 100 million tonne of iron ore production in the next few years. We would like to go from 30 MT to 100 MT. We are planning to raise our capacity by 2021 and achieve production of 100 MT by 2024-2025 and provide iron ore to various steel plants,” Kothari added.
On future plans, NMDC plans to commission its pellet plant at Donimali soon. It is also planning to open a new Kumaraswamy Iron Ore mine in Karnataka. Besides, it is also in talks with four state governments — Orissa, Jharkand, Chattisgarh and Karnataka — to create special purpose vehicle (SPVs) for new steel plants.
On acquisitions, Kothari said, “We are on the lookout for buyouts. We are working on a potash asset in Russia for which a due diligence is currently being worked out.”
“We are also looking at other minerals such as phosphate and potash assets, coking coal reserves in Australia and Africa,” he added.
* Iron ore production fell to 7.94 mt from 9.96 mt and there was an over 50% fall in prices
* NMDC plans to commission a pellet plant soon. It is also planning to open a new iron ore mine in Karnataka
* The company is in talks with Orissa, Jharkand, Chattisgarh and Karnataka to create SPVs for new steel plants