Trading giant MMTC today reported 86% increase in net profit at Rs 12 crore in the first quarter ended June 30, mainly on account of lower expenses and austerity measures adopted by the company.
The net profit of the company was Rs 6.47 crore during the same period last year, MMTC said in a BSE filing.
"The rise in profit is mainly on account of lower expenses (cost of material consumed, purchases of stock-in -trade and employee related expenditure)," a company official said.
The austerity measures adopted by MMTC helped bring down expenses, he added.
The state-owned unit total expenses also declined to Rs 5,329 crore for the quarter against Rs 20,430 crore in the same period last year.
The increase in net profit came despite a 73% fall in its total income from operations which stood at Rs 5,323 crore during the period under review.
Shares of MMTC today closed at Rs 792 on the BSE, down 0.54% from their previous close.