NMDC Q2 net falls 48 percent on low iron ore price

State-run National Mineral Development Corp (NMDC) on Tuesday reported a 48 percent fall in standalone net profit for the second quarter ended September, at Rs.810.24 crore, caused by weak demand for steel affecting prices of iron ore.

The company had posted a net profit of Rs.1,566.75 crore during the same period a year ago, it said in a stock exchange filing.

NMDC's total standalone income in the quarter in question also declined 48 percent to Rs.1,602.23 crore, from Rs 3,105.05 crore during the same quarter of 2014-15.

The miner cut prices of iron ore by over 52 percent to Rs.1,460 per tonne for October, as compared to Rs.3,060 a tonne in January this year.

The price of the higher grade iron ore has been cut by 41 percent to Rs.2,500 per tonne for October 2015 compared to Rs.4,200 a tonne in January.

The miner paid Rs.135.96 crore as contribution towards the District Mineral Foundation and the National Mineral Exploration Trust fund.

NMDC stock closed on Tuesday at Rs.90.95 a share, down 2.41 percent on its previous close at the Bombay Stock Exchange.