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NMDC declares massive 300% interim dividend

NMDC Ltd on Thursday recommended an interim dividend of 300 per cent during its board meeting. The board of directors during the meeting declared that the company’s production of iron ore during the second quarter is 5.94 million tonnes (MT) which has registered a growth of more than 10 per cent over the corresponding period last year (CPLY), while sales of iron ore was 6.50 MT which is about 11 per cent more than that of the corresponding quarter of the previous year.

The company’s production of iron ore for half yearly for the year 2013-14 is 12.86 million tonnes registering a growth of 5 per cent over the corresponding period last year while sales of iron ore was 13.76 MT which is almost 8 per cent more than that of the corresponding half year of previous year.

NMDC has posted a turnover of Rs. 2,480 crore, gross profit of Rs. 1,997 crore and net profit after tax of Rs. 1,318 crore in the second quarter of 2013-14 representing a decrease of 5 per cent in turnover, 20 per cent in gross profit and 22 per cent in net profit after tax over the corresponding period last year.

The members also declared NMDC’s turnover for half yearly for the year 2013-14 which is Rs 5,351 crore. It incurred gross profit of Rs. 4,387 crore and net profit after tax of Rs. 2,891 crore representing a decrease of 2 per cent in turnover, 17 per cent in gross profit and 19 per cent in net profit after tax over corresponding period last year.

For the year 2013-14, capital expenditure of Rs. 2,720 crore is planned to be incurred including Rs. 100 crore for overseas acquisitions. So far, the capital expenditure of Rs. 1,125 crore has been incurred.

Speaking on the occasion, NMDC Chairman & Managing Director C S Verma said, ‘NMDC is gearing up to ramp up its production and dispatches vigorously which is evident from these results.’

‘In spite of adverse conditions, NMDC has outperformed by showcasing growth in both production and dispatches. The resilient nature of NMDC would ensure to cope up with the challenges and would create new opportunities for sustainable growth,’ added Verma.

During the meeting, the board stated that the installation of the 3 million tonne-per-annum (MTPA) steel plant at Nagarnar in Chhattisgarh as part of NMDC’s forward integration programme and value addition is being diligently pursued.

The members also said that orders for major technological packages have been placed, other auxiliary packages are in advanced stages of finalization and construction works of the major packages are being undertaken.

As part of its expansion programme, NMDC is developing two new mines — one in Bailadila sector in Chhattisgarh, Deposit-11B Iron Ore Project and Kumaraswamy Iron Ore Mine in Bellary-Hospet region in Karnataka.  The members also declared that the orders for setting up of 1.2-MPTA pelletisation plant in Karnataka have already been dispatched.
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