NMDC’s September quarter net profit down 21%

New Delhi: NMDC, the country’s largest producer of iron ore, posted a 21.5% year-on-year drop in net profit for the quarter ended 30 September to ₹ 1,318 crore due to lower price of this raw material for steel.

Company’s profit in the preceding June quarter was ₹ 1,572 crore. Turnover fell 5% to ₹ 2,480 crore during the quarter from ₹ 2,612 crore a year ago.

But despite the fall in the net profit, the company has recommended a 300% interim dividend for fiscal year 2013-14.

Chairman and managing director C.S. Verma said that with steel demand in the country expected to grow by 6% in the current fiscal, there would be a spurt in demand for iron ore. “Prices are firming up but I don’t see any violent increase or decrease in the (near) future,” verma said at a press conference. NMDC commands about 19% of the country’s iron ore market.

NMDC had raised the price of both lumps and fines of iron ore in the current month by ₹ 100 per tonne for the first time in the past one year.

The current price of the iron ore (lump) is ₹ 4,300 per tonne while fines are prised at ₹ 2,610 per tonne.

PTI contributed to this story.