NMDC targets Rs 13,500-cr turnover

State-run iron ore miner NMDC is eyeing Rs 13,500 crore sales turnover and around 29 million tonnes sale of the key steel making raw material in the current fiscal, a top company official said.

"Our sales turnover is likely to be Rs 13,500 crore in the current fiscal," NMDC Director Finance S Thiagrajan told PTI.

The country's largest iron ore miner reported Rs 11,369 crore sales in the last fiscal over Rs 6,239 crore in FY'10. Net profit of the company went up to Rs 6,499 crore compared to Rs 3,447 crore in FY'10.

The estimate is based on the expected rise in the company's production and sales, which are likely to be around 29 million tonnes, in the current fiscal, Thiagrajan said.

"In 2010-11, NMDC's production and sales were at 25.16 million tonnes and 26.32 million tonnes representing an increase of 6% and 9%, respectively over 2009-10," he said.

In addition to the increased production and sales, NMDC also anticipates stability in iron ore prices at the current level during the remaining part of the fiscal and hoped this would inflate the topline of the company.

NMDC reported a whopping 97% jump in its Q4 net profit to Rs 2,099 crore on record sales and a "comfortable" price of the key steel making raw material.

Announcing results, NMDC Chairman and Managing Director Rana Som said, "This is a sustainable trend. We are confident that this trend will be maintained in the current fiscal".

Talking about the price of the iron ore in the current fiscal, Som said that the last 8-9 month's trend only pointed to a "very little" fluctuation and even when it was there, the range was "very small".

"In case, prices go down, there is a huge demand for our products, which are regarded, in certain cases, as good as pellets," he said.