Country's top iron ore miner NMDC today reported a massive 47 per cent decline in its net profit at Rs 1,010 crore for the April-June quarter of the current fiscal, hit by subdued demand which impacted ore sales.
Country’s top iron ore miner NMDC today reported a massive 47 per cent decline in its net profit at Rs 1,010 crore for the April-June quarter of the current fiscal, hit by subdued demand which impacted ore sales.
NMDC had reported a net profit of Rs 1,915.01 crore in the corresponding quarter of 2014-15.
Its total income from operations declined by a huge 48 per cent to Rs 1,806.43 crore during the quarter under review as against Rs 3,476.73 crore in a year-ago period, NMDC said in a BSE filing.
The company incurred total expenses to the tune of Rs 743.86 crore in the first quarter over Rs 1,114.63 crore in the corresponding quarter of last fiscal.
Segment-wise, net income from iron ore declined to Rs 1,787.68 crore during the quarter from Rs 3,439.73 crore in the same quarter previous year.
The company has been facing the heat on account of falling iron ore prices in the international market and had to cut prices.
The company said “the impact of District Mineral Foundation and National Mineral Exploration Trust under MMDR Act is not considered, pending notification of the rules by the government.”
Also, it said with the company’s further contribution of Rs 68 crore (cumulative contribution of Rs 281.36 crore), the share of the company in International Coal Ventures Pvt Ltd stands at 24.97 per cent on June 30.
ICVL is a consortium of PSU firms for buying mines abroad.
NMDC has set a target of Rs 13,500 crore in turnover for the current fiscal as per a pact signed with the government in which it has also set a production target of 35 million tonnes for the current fiscal.
According to the agreement, NMDC will make a capital expenditure of Rs 3,767 crore in the 2015-16 fiscal.
The company has set a gross operating margin target of Rs 9,450 crore.
NMDC shares closed 1.25 per cent down at Rs 103 apiece on the BSE.