National Mineral Development Corporation (NMDC), the single-largest producer of iron ore in the country, has posted a 22% fall in net profit to R1,318 crore in the second quarter, on a year-on-year basis. Total income declined by 5% to R2,480 crore over the corresponding period last year. Ebitda dropped 22.8% y-o-y to R1,494 crore and operating profit margin slipped 1,390 basis points on a yearly basis to 60.2%.
The company’s turnover for the first half stood at R5,351 crore on a net profit of R2,891 crore representing a decrease of 2% in turnover and 19% in net PAT over corresponding period last year. The board has recommended interim dividend of 300%.
According to CMD CS Verma, NMDC is gearing up to ramp up its production and dispatches vigorously. In spite of adverse conditions, NMDC has outperformed by showcasing growth in both production and dispatches. The resilient nature of NMDC would ensure to cope up with the challenges and would create new opportunities for sustainable growth, he said in a release.
The company’s production of iron ore during the second quarter is 5.94 million tonne (mt) registering a growth of more than 10% over CPLY while sales of iron ore was 6.50 mt, which is about 11% more than that of the corresponding quarter of previous year. For the first half of this fiscal, iron ore production was 12.86 mt, registering a growth of 5% over CPLY while sales of iron ore was 13.76 mt, which is almost 8% more than that of the corresponding half year of previous year.
For the year 2013-14, a capital expenditure of R2,720 crore is planned to be incurred including R100 crore for overseas acquisitions. So far, the capital expenditure of R1,125 crore has been incurred.