India’s top iron ore miner, NMDC has reported 47% decline in net profit at INR 10.10 bn in Q1 FY16.
Recently, NMDC reported that its ore sales have been affected badly amidst sluggish demand, affecting its net profit by 47% Y-o-Y to INR 10.10 bn in Q1 FY16. The company’s net profit in Q1 FY15 was INR 19.15 bn.
NMDC’s total income from operation fell by 48% to INR 18.06 bn during the quarter compared to INR 34.77 bn in the same quarter previous year. The company has incurred INR 7.44 bn of total expenses in Q1 FY16 against INR 11.15 bn in Q1 FY15. However, its net income from iron ore has fallen to INR 17.88 bn during the quarter from INR 34.40 bn in Q1 FY15.
NMDC has been facing the heat on account of declining iron ore prices in global market, which in turn had forced the miner to reduce its prices.
The company has targeted INR 135 bn turnover in FY16 as per a pact signed with the Indian government. As per the agreement, the company will make a capital expenditure of INR 37.67 bn in FY16.
In FY15, NMDC had produced 30.44 MnT of iron ore and now has targeted a production of 35 MnT in the current fiscal.
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