NMDC net dips 40% to Rs 860 cr

State-run mining giant NMDC’s net profit has declined 40 per cent to Rs 860 crore in the third quarter ended December 31, 2009.

The company had net profit of Rs 1,425 crore in the December quarter of 2008, according to a public announcement today.

Net sales of the company declined by 32 per cent to Rs 1,587.58 crore for the third quarter of this financial year.

The company further said net sales for the three months ended December 31, 2009, included Rs 1,036 crore as a result of price variations during the period between April to September 2009.

“Net sales without the price variations would be Rs 1,301 crore, compared with Rs 1,587 crore for the quarter ended December 31, 2009,” the company added.

The board of directors of the company has also approved an interim dividend of 75 per cent on the paid-up equity share capital of the company for 2009-10.

NMDC is set to file the draft prospectus with market regulator Securities and Exchange Board of India tomorrow for its estimated Rs 20,000-crore follow-on public offer. The government is selling 8.38 per cent of its stake in the miner.

The NMDC counter closed at Rs 532.50, up 7 per cent on BSE on Friday last week, when the benchmark index fell over 1 per cent.