NMDC Q1 Profit Falls 47% to Rs 1,010 Crore

New Delhi: NMDC, India's top iron ore miner, on Tuesday reported a 47 per cent decline in net profit at Rs 1,010 crore for the April-June quarter of the current fiscal year (2015-16), hit by subdued demand which impacted ore sales.

NMDC had reported a net profit of Rs 1,915.01 crore for the corresponding period a year ago.

Total income from operations declined by 48 per cent to Rs 1,806.43 crore in the quarter ended June 2015 as against Rs 3,476.73 crore in the quarter ended June 2014, NMDC said in a filing to the BSE.

The company incurred total expenses to the tune of Rs 743.86 crore in the first quarter over Rs 1,114.63 crore in the corresponding quarter of last fiscal year.

Segment-wise, net income from iron ore declined to Rs 1,787.68 crore as compared to Rs 3,439.73 crore a year ago.

The company has been facing the heat on account of falling iron ore prices in the international market and had to cut prices.

The company said, "The impact of District Mineral Foundation and National Mineral Exploration Trust under MMDR Act is not considered, pending notification of the rules by the government"

It also said that with its further contribution of Rs 68 crore (cumulative contribution of Rs 281.36 crore), the share of the company in International Coal Ventures Pvt Ltd stood at 24.97 per cent as of June 30.

ICVL is a consortium of PSU firms for buying mines abroad.

NMDC has set a target of Rs 13,500 crore in turnover for the current fiscal year as per a pact signed with the government in which it has also set a production target of 35 million tonnes for the current fiscal year.

According to the agreement, NMDC will make a capital expenditure of Rs 3,767 crore in FY16.

The company has set a gross operating margin target of Rs 9,450 crore.

Shares in NMDC, on Tuesday, ended 1.25 per cent lower at Rs 103 apiece on the BSE.