Millennium Post

NMDC reports quarterly profit of Rs 1,679 cr

State-owned iron ore miner NMDC on Wednesday reported a nearly 15 per cent decline in its net profit to Rs 1,678.62 crore for the quarter ended September 30, 2012, largely due to lower production and fall in sales.

The Hyderabad-based firm had reported a net profit of Rs 1,963.15 crore during the corresponding quarter of the previous fiscal.

Net sales of the company declined by 14.71 per cent to Rs 2,611.84 crore due to a nearly 15 per cent fall in its iron ore sales, the company said in a filing to the Bombay Stock Exchange (BSE).

The iron ore miner had reported net sales of Rs 3,062.32 crore during the corresponding quarter of financial year 2011-12.

Besides, its total expenditure too rose by about 8 per cent to Rs 710.28 crore during the July-September period while its tax outgo declined by 14.49 per cent to Rs 806.16 crore.

The company, which is sitting on a cash reserves of Rs 22,516 crore as on September 30, 2012, reported an over 16 per cent increase in its Rs 583 crore other income (largely interest earned on the deposits).

Last month the company had said its iron ore production was down by about 23 per cent to 5.38 million tonnes during the July-September quarter due to heavy rains and evacuation-related issues in Chhattisgarh, where its mainstay Bailadila mines are located.

For the half year ended September 30, 2012, the company reported a decline of nearly 5 per cent in net profit to Rs 3,584.62 crore while its net sales was down nearly 7 per cent to Rs 5,449.74 crore.

NMDC shares closed at Rs 182.30 apiece on the Bombay Stock Exchange on Wednesday, down 2.07 per cent from their previous close.
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