Home >Companies >Company-results >NMDC’s September quarter net profit down 21%
Turnover fell 5% to Rs2,480 crore during the quarter from Rs2,612 crore a year ago. Photo: Aniruddha Chowdhury/Mint
Turnover fell 5% to Rs2,480 crore during the quarter from Rs2,612 crore a year ago. Photo: Aniruddha Chowdhury/Mint

NMDC’s September quarter net profit down 21%

Net profit declines to `1,318 crore from `1,679 crore a year earlier

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.

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