NMDC Q2 Net down 15 pc at Rs 1,678.62 crore

NEW DELHI: State-owned iron ore miner NMDC today reported a nearly 15 per cent decline in its net profit at Rs 1,678.62 crore for the quarter ended September 30, 2012, largely due to lower production and fall in sales.

The Hyderabad-based firm had reported a net profit of Rs 1,963.15 crore during the corresponding quarter in the previous fiscal.

Net sales of the company declined by 14.71 per cent to Rs 2,611.84 crore due to nearly 15 per cent fall in its iron ore sales, the company said in a filing to the BSE.

The iron ore miner had reported a net sales of Rs 3,062.32 crore during the corresponding quarter of FY'12.

Besides, its total expenditure also rose by about 8 per cent to Rs 710.28 crore during the July-September period, while its tax outgo declined by 14.49 per cent to Rs 806.16 crore.

The company, which is sitting on a cash reserves of Rs 22,516 crore as on September 30, 2012, reported over 16 per cent increase in its Rs 583 crore other income (largely interest earned on the deposits).

Last month, the company had said its iron ore production was down by about 23 per cent at 5.38 million tonnes during the July-September quarter due to heavy rains and evacuation related issues in Chhattisgarh, where its mainstay Bailadila mines are located.

For the half year ended September 30, 2012, the company reported a decline of nearly 5 per cent in its net profit to Rs 3,584.62 crore, while its net sales was down nearly 7 per cent to Rs 5,449.74 crore.

NMDC shares closed today at Rs 182.30 apiece on the BSE, down 2.07 per cent from their previous close.