Mining major GMDC's Q2 net profit up 12% at Rs 63 cr

State-run mining major, Gujarat Mineral Development Corporation Ltd (GMDC) has posted 12 per cent growth in profit after tax (PAT) at Rs 63 crore for the second quarter of the current fiscal, 2011-12.

Company registered total revenues of Rs 259 crores for the quarter under consideration higher by 2 per cent compared to that of September 2010. In a statement issued on Monday, company informed that during the quarter under review, lignite mining generated total revenue of Rs 185 crore, which constitutes about 71 per cent of GMDC's total revenues generated during the quarter. Revenues from bauxite stood Rs 40 crore during the quarter.

Commenting about the company's strategy to increase mining activity, V S Gadhavi, managing director of GMDC maintained, "In order to meet with ever increasing demand for lignite as fuel, GMDC has expedited efforts to get required clearances for Umarsar lignite mines in Kutch district. This mine promises to be a strategic addition to GMDC's existing mineral projects portfolio."

As a strategic investment, GMDC's recent foray into wind power generation has generated a total revenue of Rs 33 crores which was higher by 256 per cent against that of corresponding period last year.

Gadhavi informed that GMDC would be aiming at generation of another 100 megawatt (Mw) of wind energy in phase-wise manner.

It also plans to set up a 5 Mw solar power plant on reclaimed land at Panandhro, which sets to be a model to be replicated by other mineral players of the country, the company statement said.