NMDC Q1 net profit up 22% on higher sales, ore price

Company had clocked Rs 1,572.19 crore net profit in the same quarter last fiscal

Buoyed by higher sales and price of iron ore, state-owned miner NMDC today reported 21.8% rise in net profit for the April-June quarter at Rs 1,915 crore.

The country's largest producer of the steel-making raw material had clocked Rs 1,572.19 crore net profit in the same quarter last fiscal, it said in a release.

Helped by higher sales, total income of the company rose to Rs 3,476.73 crore during Q1, 2014-15 from Rs 2,870.62 crore in the first quarter of last fiscal.

NMDC sold 85.85 lakh tonnes of iron ore in the April-June quarter of this fisal.

It had raised the price of lump or superior variety of the raw material in June by Rs 300 per tonne after reducing it in May by Rs 200 a tonne from the April price of Rs 4,500 per tonne.

NMDC also raised the price of fines, which has low iron content, by Rs 250 per tonne in June after maintaining price both in April and May at Rs 2,910 a tonne.

The higher price led to higher net sales realisation and boosted its profit for the quarter, a company official said.

Total expenses of the company, which is also entering into steel-making, during the April-June quarter also rose to Rs 1,114.63 crore from Rs 1,001.79 crore a year ago.

Tax expenses too went up to Rs 988.91 crore from Rs 817.55 crore a year ago.