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| NMDC gung-ho over future plans ahead of FPO |
| Press Trust of India / New Delhi Feb 19, 2010, 17:07 IST |
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Working on a major expansion, which includes global acquisition and foraying into new areas, mineral PSU NMDC is believed to be eyeing annual profits of Rs 10,000 crore in three years, two and a half times the present profitability.
The company, which is set to hit the market next month to sell over 33 crore government shares, is banking on a the steel plant it is building in Chhattisgarh and on higher prices of its mineral wealth for the Rs 10,000-crore net profit on a turnover of Rs 30,000 crore.
When contacted, NMDC CMD Rana Som refused to give projections saying it would be futuristic statement and against the market regulator Sebi's norms.
As per the draft shareholding prospectus that it has filed with Sebi, NMDC has mega plans in mining, steel and other sectors. It also mentioned some of the efforts it is making for acquisition of properties abroad.
The company has an investment plan of Rs 30,000 crore in next three to four years. With present level of profits and cash reserves, a chunk of financing would be internal, a source close to the development said.
NMDC had recorded a profit of Rs 4,372 crore last fiscal, reflecting 34 per cent growth over 2007-08, besides cash reserves of over Rs 13,000 crore.
In principle, Som said, the company has strong fundamentals and intrinsic value and hence the trading in company's shares and prices were steady. He repeatedly declined to comment on acquisition details and other financial parameters and growth prospects.
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