The worst is over; demand of steel and iron ore has picked up – C S Verma 

In third quarter of financial year 2012-13, NMDC's net sales dropped by 13.46% to Rs 7,500.02 crore.

Profits down by 30% to Rs 1,293 crores.

On the above figures, C S Verma, Chairman for NMDC said, “In the first three quarters, we sold 18 million ton (mt) of Iron ore.

Firstly, Bailadila region's broken pipeline through which 7 to 8 million tons of Iron ore was sold has acted as a big disadvantage in evacuation for last one year.

Yet, we managed to sell out 5 mt in Q3.

Secondly, record breaking rains of about 125 centimeter in Bailadila region that never happened in last 20 years impacted our performance as it accounts for 80% of our production.

Output from Bailadila has improved now as rains has stopped. 3 mt was the total production in January, which happened for the first time since our formation.

It will be rising further as our uniflow system has started, we have signed our agreement with the Indian railways for doubling of the track between Kirandul  and Jagdalpur.

Important agreements with some customers whereby we will be laying a slurry pipeline between Bailadila region to Vizag has been signed already”.

Regarding Iron ore prices across the globe, in an interview with a news channel, the Chairman also stated that international and domestic prices have been inconsistent in last one year.

In April 2012, offers at USD 150/MT slipped to USD 90/MT in October and again jumped to USD 160/MT in November mid.

USD 190/MT was the highest levels in last couple of years, currently quoted at USD 150/MT.

I cannot comment on profits as prices have to be market related but the worst is over as demand for both steel and iron ore in Indian as well as international market has picked up in last couple of months.

About, buying of stakes in other PSU's, the official shared that the company does not have any solid proposal as of now.

NMDC has to abide by Department of Public Guidelines (DPE), Government of India for guidelines on investments.

About 22,000 crore is the current amount lying in bank and we are open to all sorts of investments provided it should give us good amount of yield and should be a safe one.