Subdued demand hits NMDC Q1 net

Country’s top iron ore miner NMDC on Tuesday reported a massive 47 per cent decline in its net profit at Rs 1,010 crore for the April-June quarter of the current fiscal, hit by subdued demand which impacted ore sales.

NMDC had reported a net profit of Rs 1,915.01 crore in the corresponding quarter of 2014-15. Its total income from operations declined by a huge 48 per cent to Rs 1,806.43 crore during the quarter under review as against Rs 3,476.73 crore in a year-ago period, NMDC said in a BSE filing. 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 FY.

Segment-wise, net income from iron ore declined to Rs 1,787.68 crore during the quarter from Rs 3,439.73 crore in the same quarter previous year. 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 has set a target of Rs 13,500 crore in turnover for the current FY as per a pact signed with the government.