MMTC Q4 net declines 84.4% to Rs 15.35 cr
The state-run trading giant MMTC today posted 84.4% decline in its net profit at Rs 15.35 crore for the quarter ended March 2011, due to increase in its expenditure.
During the January-March quarter of FY10, the company's profit after tax stood at Rs 98.95 crore.
During FY2011, the company registered a decline of 48% in its net profit at Rs 112.77 crore, as against Rs 216.24 crore in the previous fiscal.
"MMTC's profitability has also been adversely affected due to increased expenditure on salaries and overheads during FY11," the company said in a statement.
The company reported a 2.4% dip in its trading profit at Rs 309.70 crore in the last fiscal on lower mineral exports, the main contributor to the firm's bottom line, due to a ban on iron ore exports from Karnataka for eight months in the last fiscal.
It has resulted into a decrease of about 50% to three million tonne in iron ore exports in FY11 compared to six million tonne in the previous year, it said.
However, MMTC recorded a 52% growth in its turnover to Rs 68,687 crore in the last fiscal.
The company's net worth rose to about Rs 1,400 crore with zero long-term debts, it added.
The government is likely to sell about 10% of its stake in the trading giant MMTC in September-October, the Commerce Ministry had said.