Millennium Post

NMDC Q4 profit up 33.9% on record production, sales

State-owned miner NMDC on Friday reported 33.9 per cent rise in standalone net profit to Rs 1,962.14 crore for the quarter ended 31 March, 2014, on the back of record production and sales.The company's net profit in the corresponding quarter of FY13 was Rs 1,464.95 crore. Total income from operations during the quarter was at Rs 3,884.49 crore, registering an increase of 21.2 per cent over Rs 3,204.25 crore in
the year-ago period.

The mining company achieved record production and sales of iron ore during the quarter at 9.86 million tonnes and 9.4 million tonnes, respectively, NMDC CMD Narendra Kothari told reporters here. For full FY2014, net profit increased to Rs 6,420 crore against Rs 6,342 in FY13. The turnover stood at Rs 12,058 crore in FY14 against Rs 10,704 crore in FY13.

‘We have for the first time this year crossed 30 million tonnes (MT) production and sales. The production and sales of iron ore during the last financial year stood at 30.02 MT and 30.50 MT respectively,’ Kothari said.

The PSU aims to achieve 31 MT of production and 32 MT of sales this year, he added. ‘Though NMDC is producing around 22 per cent of the country's iron ore production, it would be our endeavour to touch 50 per cent of the country's production in the near
future,’ he said.Replying to a query, he said the miner will spend Rs 3,495 crore towards capital expenditure during the current financial year, of which Rs 2,280 crore will be spent on the steel plant being set by the company in Chhattisgarh.The capital expediture incurred in last fiscal under various schemes was Rs 2,518 crore.

NMDC Director (technical) N K Nanda said the company is doing due dilligence for four overseas assets.‘We are doing due diligence for coal assets in Indonesia, some iron ore assets in Australia and also some assets in Mozambique. In Russia we are doing due diligence for Rock phosphate.’

According to him, the rock phosphate project in Russia is being taken up with some fertiliser companies and the ministry concerned.
On lifting of ban on iron ore mining in Goa by the Supreme Court, Kothari said there will be not any impact on the demand-supply situation domestically as the most of the commodity from Goa will be exported.

On exports to other countries, the NMDC chief said their main focus is to meet the domestic demand.He, however, said there are some long-term contracts with Japan and Korea which they will fulfill.According to him, around 10 per cent of the total production is being exported currently.
Next Story
Share it