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NMDC net up 34%

The company's turnover during the period increased by 21% to Rs 3,884 cro

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BS Reporter
Last Updated : May 30 2014 | 10:40 PM IST
State-owned iron ore miner NMDC reported a 34 per cent rise in net profit at Rs 1,962 crore for the quarter ended March 2014, compared with a profit after tax of Rs 1,465 crore in the same quarter previous year. Turnover during the period increased 21 per cent to Rs 3,884 crore from Rs 3,204 crore.

In 2013-14, the company’s turnover and net profit were at Rs 12,058 crore and Rs 6,420 crore. Production and sales of iron stood at 30.02 million tonnes (mt) and 30.50 (mt) respectively. It had set a target to produce and sell 31 mt and 32 mt this year.

NMDC chairman and managing director, Narendra Kothari, said the company had incurred a capital expenditure of Rs 2,518 crore last year and planned to spend Rs 3,495 crore in the current year. The bulk of this amount  would be on the execution of the Rs 15,000- crore Nagarnar steel plant in Chhattisgarh.

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Kothari said NMDC would operate the steel plant on its own and had no plans to induct a partner. The plant was expected to go on stream by October 2016. So far, Rs 4,000 crore had been spent on the plant and orders for equipment worth Rs 13,500 were already placed.

He said the lifting of ban on iron ore mining in Goa  would not have any impact on the domestic ore prices, which were expected to remain more or less the same. The prevailing price of fines  and lumps were Rs 2,910 and Rs 4,500 a tonne respectively. NMDC  director (commercial), SK  Das, said there was a likelihood that the prices may go up “a little bit but not down”.

NK Nanda, director (technical), said the company had identified land for the proposed 250 Mw power plant in Chhattisgarh. It was working with the state government to obtain further clearances.

In the case of the 2 x 250 Mw power plant at Gonda in Uttar Pradesh, to be set up in a joint venture with IL&FS, Nanda said an application had been made for environmental clearance.

NMDC has targeted to increase its annual production to 50 mt by 2020.

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First Published: May 30 2014 | 8:30 PM IST

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