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NMDC slips after weak Q2 results

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Capital Market
Last Updated : Oct 25 2013 | 11:55 PM IST

NMDC fell 1.61% to Rs 137.80 at 9:20 IST on BSE after net profit declined 21.46% to Rs 1318.36 crore on 5.53% fall in total income to Rs 3018.29 crore in Q2 September 2013 over Q2 September 2012.

The company announced result after market hours on Thursday, 24 October 2013.

Meanwhile, the BSE Sensex was down 35.62 points, or 0.17%, to 20,689.81.

On BSE, 40,000 shares were traded in the counter compared with average volume of 2.62 lakh shares in the past one quarter.

The stock hit a high of Rs 138.50 and a low of Rs 135 so far during the day. The stock hit a 52-week high of Rs 188.30 on 25 October 2012. The stock hit a 52-week low of Rs 92.65 on 6 August 2013.

The stock had outperformed the market over the past one month till 24 October 2013, rising 13.13% compared with the Sensex's 4.04% rise. The scrip had also outperformed the market in past one quarter, rising 29.62% as against Sensex's 3.16% rise.

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The large-cap company has an equity capital of Rs 396.47 crore. Face value per share is Re 1.

NMDC's production of iron ore rose over 10% to 5.94 million tonnes (MT) while sales of iron ore rose about 11% to 6.50 MT in Q2 September 2013 over Q2 September 2012.

NMDC posted a turnover of Rs 2480 crore, gross profit of Rs 1997 crore and net profit after tax of Rs 1318 crore in Q2 September 2013 representing a decrease of 5% in turnover, 20% in gross profit and 22% in net profit after tax over Q2 September 2012.

For the year 2013-14, capital expenditure of Rs 2720 crore is planned to be incurred including Rs 100 crore for overseas acquisitions. So far, the capital expenditure of Rs 1125 crore has been incurred, NMDC said in a statement.

The company said that the installation of 3 million tonnes per annum (MTPA) steel plant at Nagarnar in Chhattisgarh, as part of NMDC's forward integration programme and value addition, is being pursued vigorously. Orders for major technological packages have already been placed, other auxiliary packages are in advanced stages of finalization and construction works of the major packages are being undertaken on war footing, it said.

As part of its expansion programme, NMDC is developing two new mines, one in Bailadila Sector in Chhattisgarh i.e. Deposit-11B Iron Ore Project and the other in Bellary-Hospet region in Karnataka i.e. Kumaraswamy Iron Ore Mine. Besides, orders have already been placed for setting up of 1.2 MTPA capacity Pelletisation plant in Karnataka, NMDC said.

Speaking on the occasion, Shri C.S. Verma, CMD said: "NMDC is gearing up to ramp up its production and dispatches vigorously which is evident from these results. Inspite of adverse conditions, NMDC has outperformed by showcasing growth in both production and dispatches. The resilient nature of NMDC would ensure to cope up with the challenges and would create new opportunities for sustainable growth."

State-run NMDC is India's single largest iron ore producer and exporter. The Government of India (GoI) holds 80% stake in NMDC (as per the shareholding pattern as on 30 September 2013).

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First Published: Oct 25 2013 | 9:23 AM IST

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