Iron ore miner NMDC has reported a marginal 2% increase in net profit at Rs 1,593 crore...
Iron ore miner NMDC has reported a marginal 2% increase in net profit at Rs 1,593 crore for the December quarter due to lower sales against a Rs 1,567-crore net profit in the same quarter last fiscal. NMDC posted a turnover of Rs 2,946 crore from Rs 2,823 crore, representing an increase of 4% in turnover over the corresponding period last year.
The company’s production of iron ore was 8.11 million tonne, registering growth of more than 11% over the corresponding period last year while sales of iron ore were 6.97 million tonne, about 5% lower.
For 2014-15, a capital expenditure of Rs 3,555 crore is planned. The capital expenditure incurred so far is Rs 2,225 crore.
NMDC’s focus is on setting up of a 3-mtpa steel plant at Nagarnar, for which major infrastructure packages have already been awarded.
As part of its expansion programme, NMDC is developing two new mines, one in Bailadila sector in Chhattisgarh, i.e., Deposit-11B Iron Ore Project, which is likely to be commissioned during this fiscal and the other in Bellary-Hospet region in Karnataka, i.e., Kumaraswamy Iron Ore Mine, which is likely to be commissioned by the end of the second quarter of 2015-16. Besides, NMDC is setting up a 1.2-mtpa capacity pellet plant at Donimalai in Karnataka, which is likely to be commissioned by June 2015.
In a release, Narendra Kothari, CMD said, “NMDC is putting its concerted efforts to attain its target of reaching iron ore production of 75 mtpa by 2018-19 so as to meet the demand of the domestic steel industry. With these kind of results NMDC would certainly be in the forefront and move towards ensuring sustainable growth.”