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Country’s largest Iron ore producer NMDC Limited reported a 21.5 per cent fall in net profit to Rs 1,318.36 crore in the quarter ended September 2013, as compared with the net profit of Rs 1,678.62 crore posted during the corresponding quarter previous year.
The public sector undertaking’s income from operations, however, declined marginally 5 per cent to Rs 2,479.92 crore from Rs 2,611.98 crore in the same period.
The company’s selling expenses, including freight-out, increased 72 per cent (Rs 153.77 crore) to Rs 366.44 crore during the quarter compared with Rs 212.67 crore in the same period last year.
NMDC stated exports in the first half of the current financial year stood at 1.2 million tonnes as against 375,000 tonnes in the corresponding period of previous year. Due to this, selling expenditure had gone up by Rs 388.45 crore. Besides, on account of a Supreme Court April 18, 2013, judgment on illegal mining cases in Karnataka, 10 per cent of the sale proceeds of Donamalai sector amounting to Rs 125.07 crore was accounted in ‘other expenses’. This amount was earmarked towards contribution for a special purpose vehicle to be formed in Karnataka.
In the second quarter of the current year, NMDC produced 5.94 million tonnes of iron ore, registering a growth of 10 per cent over the same quarter last year. Sales during this period at 6.5 million tonnes also increased 11 per cent.
In 2013-14, the company has planned a capital expenditure of Rs 2,720 crore, including Rs 100 crore for overseas acquisitions. So far, it had incurred a capital expenditure of Rs 1,125 crore.
