NMDC profit in 2007-08 surges by 40% YoY

May 22, 2008

May 22 (Steel Guru) – It is reported that aided by a hike in prices, the public sector mining major NMDC Ltd has registered a 43% YoY increase in net profit to INR 1,016 crore for the fourth quarter ended March 31st 2008 as compared to INR 711.01 crore in the corresponding previous quarter.

NMDC in a release said that it has registered a net profit of INR 3,250.98 crore for 2007-08, a 40% YoY growth over the corresponding period a year ago. Net sales for the quarter under review increased 38% YoY to INR 1,894.51 crore.

The release said that “NMDC achieved a record domestic sale of 24.406 million tonnes of iron ore as against the previous year’s sale of 22.328 million tonnes, a 9% YoY increase. Total export of iron ore during the year was 3.778 million tonnes as against 3.261 million tonnes in the previous year, an increase of 16% YoY including low grade ore.”

It added that “The company has declared a final dividend of INR 214.09 crore in addition to the interim dividends of INR 437.44 crore already paid, totaling to INR 651.53 crore for 2007-08. The final dividend recommended by the Board works out to 54% on post bonus shareholding basis.”

An official spokesperson told Business Line “NMDC ascribed two main reasons for the performance. The first was the increase in production despite the logistical problems in the movement of ore by railways and second due to the hike in prices.”

NMDC had hiked prices across all grades of iron ore by 47.5% to INR 1,783 per tonne from October 2007. Before the price hike, it used to sell the ore with 64% iron content at INR 1,209 per tonne.

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