NMDC’s Q4 Net Drops 11%, Topline Up 23.5%

Mining Navratana NMDC earned a PAT of 1464.95 core versus 1642.28 crore in the previous year same quarter, a decline of 11%.  Its bottomline took a beating owing to a substantial increase in its selling expenses and Other Expenses. Due to the rise in costs, its expenditure went up from Rs 668.49 crore in Q4FY12 to Rs 1454.45 crore, a staggering rise of 118%. Other expenses for the quarter have also risen to Rs 561.5 crore from 152.87 crore in Q4FY12. For the fiscal too, its PAT declined to Rs 6342.37 crore from Rs 7265.39 crore in the previous year, marking a drop of 13%.

Its topline, though, has grown by 23.5%, with the turnover reaching Rs 3204 crore during the elapsed quarter as compared to that of Rs 2595 earned during Q4FY12.

NMDC’s production and sales of iron ore touched 9.57 MT and 8.24 MT respectively, an increase of 37.5% and 28% from that in the previous year corresponding quarter. However, these declined 1% and 4% respectively on an annual basis and came in at 27.184 MT and 26.274 MT. “This was mainly due to incessant rainfall as well as low offtake of iron ore by customers and evacuation problems in the Bailadila region during the second and third quarter of the year”, the company said in a statement.

The annual turnover has also come in at Rs 10704 crore in FY13 versus Rs 11262 crore earned during FY12, a drop of 5%. The company’s board recommended an interim dividend of 400% per share. Overall, it has announced a 700% dividend for FY13, its highest ever.

NMDC is working on a huge capex plan. As a part of this, it is setting up a 3 MTPA steel plant at Nagarnar in Chhattisgarh and orders worth Rs 13475 crore have already been placed. This project is expected to be completed by FY16. During FY13, company incurred capex of Rs 1607.24 crore and Rs 2720 crore is being earmarked for FY14.

Presenting the results, C S Verma, CMD, NMDC maintained, “In spite of the challenges, NMDC is adhering to play the pivotal role in the industrial development of the country. With the increase of demand of iron ore from the domestic steel industry, NMDC collective would be committed to produce 48 MT iron ore production by 2014-15.”