NMDC Q1 net down 30% at Rs 711 core

Rising costs, sales decline impact bottom line

Public sector iron ore mining company NMDC reported a 30 percent decline in net profit at Rs 711.34 core for the quarter ended June 2016 as compared with Rs 1,015.39 crore in the corresponding quarter previous year.

The company's profit margins shrunk due to rise in costs.

Also there was a 4.7 percent decline in sales income at Rs 1,720.65 crore as compared with Rs 1,806.43 crore in the year ago period.

Expenditure rose by 28.75 percent to Rs 960.189 crore as compared with Rs 745.78 crore in the corresponding previous quarter on the back of a steep rise in royalties and levies besides the increase in selling and freight costs.