MMTC Dec net down 95%

State-owned MMTC today reported a sharp decline of 95% in its net profit to Rs 1.46 crore for the quarter ended December 31, 2010 from Rs 28.10 crore in the year-ago period due to lower margins.

"There are pressures on our margins mainly on account of bullion trade," an MMTC official said.

However, the company's turnover increased to Rs 18,736 crore during October-December 2010, compared to Rs 10,958 crore in the same period last fiscal, an official statement said.

The share prices of MMTC fell by 0.01 per cent to Rs 1,007 on the BSE today.

The government has said it is likely to dilute its stake in MMTC through a follow-on public offer in the next fiscal. MMTC is under the administrative control of the Commerce Ministry.

The proposed disinvestment plans for MMTC is expected to be implemented in the next financial year, Commerce and Industry Minister Anand Sharma had said.

According to sources, the government is likely to offload 10 per cent stake in the company. The government holds 99.33 per cent stake in MMTC.