State run iron ore miner NMDC reports 36% increase in net profit at Rs 969 crore

By: | Published: August 10, 2017 6:05 AM

State-run iron ore miner NMDC on Wednesday reported a 36% increase in net profit for the three-month period ended in June at Rs 969.20 crore compared with Rs 711.34 crore in the April-June period of the last ficsal.

In a communique to the stock exchanges, NMDC said its total expenses went up to Rs 1,401.47 crore during the April-June quarter of the current fiscal from Rs 968.23 crore a year earlier. (Reuters)

State-run iron ore miner NMDC on Wednesday reported a 36% increase in net profit for the three-month period ended in June at Rs 969.20 crore compared with Rs 711.34 crore in the April-June period of the last ficsal. The standalone income of the company rose by 44% to Rs 2,970.13 crore during the reporting period as a result of growing appetite of the domestic steelmakers for more ore. NMDC, the largest iron ore producer in the country, had clocked Rs 2,065.82 crore revenue in the April-June quarter of the last fiscal.

During the January-march quarter of the last fiscal, NMDC had reported a Rs 511.88 crore net profit on a total income of Rs 3,006.25 crore.

Shares of the company on Wednesday settled at Rs 126.25 apiece, down 0.94% over the previous close in the Bombay Stock Exchange.

In a communique to the stock exchanges, NMDC said its total expenses went up to Rs 1,401.47 crore during the April-June quarter of the current fiscal from Rs 968.23 crore a year earlier. A rise in royalty outgo and ‘other expenses’ contributed to the escalation in the expenses.

The ‘other expenses’ include a Rs 41.16 crore towards expenditure on enabling facilities towards doubling of railway line between Kirandul and Jagdalpur and Jagdalpur and Ambagaon. A Rs 81.53 crore has also been provided towards expected credit loss and Rs 22.74 crore towards mines closure obligation.

Tax expenses of the company also went up to Rs 599.40 crore during the April-June quarter of the current fiscal from Rs 386.18 crore a year earlier.

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