Verma steers NMDC to impressive output & sales

Iron ore miner NMDC on Wednesday reported a net profit of Rs 1,572 crore for the April-June quarter 'Our production as well as sales were up during the quarter. But, PAT was down due to lower realisation as compared to the same period last year. We had to take Rs 310 crore hit during the quarter due to lower realisation,' NMDC chairman C S Verma told reporters here.

The Hyderabad-based PSU had reported Rs 1,906 crore net profit in the corresponding quarter of the previous fiscal.Verma said due to decrease in sales price, average sales realisation during the quarter was down by four per cent to Rs 3,907 per tonne compared to Rs 4,081 a tonne a year ago.

Though the price of fines or inferior quality of iron ore was up by eight per cent to Rs 3,100 a tonne; price of lumps or higher grade of iron ore was down by over 18 per cent to Rs 5,188 per tonne. Meanwhile, net sales of the company for April-June quarter was up marginally by 1.10 per cent to Rs 2,869.10 crore in the quarter vis-a-vis Rs 2,837.90 crore of the Q1FY’13.

Its total expenditure, at Rs 1,001.79 crore, amounted to 34.92 per cent of its net sales during the quarter due to Rs 255 crore increase in its expenditure on exporting iron ore.