The government-owned iron ore miner NMDC has reported a 15% drop in its net profit at R1,678.62 crore during the second quarter ended September, due to lower production. The company had a net profit of R1,963.15 crore in the Q2 last year.
The firms net sales fell 14.71% to R2,611.84 crore during Q2 this year from R3,062.32 crore in the same period a year ago. Its total expenditure also rose by about 8% to R710.28 crore during the July-September quarter.
NMDC had earlier said that its iron ore production was down by about 23% at 5.38 million tonnes in Q2 due to heavy rains and evacuation related issues in Chhattisgarh, where its mainstay Bailadila mines are located.
NMDC is going through a challenging period, predominantly the evacuation problem is adversely affecting NMDCs overall performance. However, the thrust would be to eliminate or reduce the evacuation problem and increase iron ore production to meet the domestic demands of the steel manufacturers and simultaneously to cater to its own steel plant. We are looking up to meet the challenges and create fresh opportunities for success, CS Verma, CMD, NMDC, said.
The PSU has planned a capital expenditure of R4,656 crore including R1,200 crore for overseas acquisitions for the year 2012-13.
NMDCs share closed at R182.30 on the BSE on Wednesday, down 2.07% from their previous close.