State-run miner and largest iron ore miner NMDC has recently released its financial results for Q4 FY16. The company has reported a decline of around 58.9% in standalone profit for Q4 FY16.
The company had posted a net profit after taxes, minority interest and share profit of associates of INR 1,347.09 crore in the corresponding quarter of 2014-15.The net sales/income from operations (net of excise duty) during the January-March quarter stood at Rs 1,529.94 crore, registering a decline of 45.8%.
The major reason behind the drop in net profit can culminate as lower sales in Q4 FY16. Financial results are impacted majorly due to lower iron ore realizations (nearly 35% Y-o-Y). Another reason could be a contribution to District Mineral Fund.
NMDC iron ore prices in Q4 FY16
In Q4 FY16, the company did not correct its prices for Jan’16 and Feb’16 months. But, increased iron ore price in the second week of March. Prices for Baila lump (Fe 65%) was at INR 1,800/MT during Jan-Feb’16, but increased by INR 150/MT and witnessed at INR1,950/MT for Mar’16. On similar lines, prices for Baila fines (Fe 64%) remained at INR1,560/MT for Jan-Feb’16 and increased by INR 150/MT for Mar’16.
NMDC iron ore production in Q4 FY16
In Q4 FY16, the company produced a total quantity of 8.22 MnT iron ore. However, in FY16, the company produced a total quantity of 28.3 MnT iron ore, down by 6.9% as it was 30.4 MnT in FY15.
The miner produced 16.6 MnT iron ore from its Chhattisgarh mines (down by 21% Y-o-Y) and 11.7 MnT iron ore from its Karnataka mines (up by 24% Y-o-Y) in FY16.
Leave a Reply