NEW DELHI : Better realisations from iron ore over the last few months helped NMDC Ltd post a 21% on year increase in net profit to 15.67 bln rupees for Oct-Dec, in line with expectations. The company’s net sales grew 38% on year to 28.22 bln rupees during the quarter.
An average of estimates by four brokerages had pegged NMDC’s Oct-Dec net sales up 39% on year and net profit up 22%.
“NMDC is in its stride to reach production of iron ore of 30 MT for the year 2013-14 which would be a record in itself for NMDC in spite of evacuation hurdles. It is evident from these results that NMDC would definitely be in the forefront in the years ahead and move towards ensuring sustainable growth,” Chairman and Managing Director C.S. Verma was quoted as saying in the release.
Net sales realisation for the Hyderabad-based company improved 1.3% to 3,795 rupees per tn, Verma said at post earnings conference call. The state-owned miner’s iron ore production in Oct-Dec stood at 7.30 mln tn, up 36% while sales volume were 7.34 mln tn, up 38%.
Verma said the company’s capital expenditure was 16.79 bln rupees in Apr-Dec, up 65% on year. He added that the company is confident of meeting its capex target of 27.20 bln rupees for the current fiscal ending March. He added that the company is hopeful of exceeding its annual production target of 27.4 mln tn, which is the “excellent” target under the memorandum of understanding signed between the mining company and the steel ministry.
The company also declared its second interim dividend of 550% or 5.50 rupees per share. This takes the total interim dividend announced by NMDC in the current financial year to 850%.