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NMDC Q3 profit declines nearly 59% on fall in iron ore prices

The company had reported a net profit of Rs 1,593.01 crore in the year-ago period.

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State-run iron ore miner NMDC on Friday posted 58.8% decline in standalone net profit at Rs 655.04 crore for the quarter ended December 31, 2015, due to fall in iron ore prices.

The company had reported a net profit of Rs 1,593.01 crore in the year-ago period. A company official said a decline in the net profit was "due to drop in prices of iron ore. The sales (of iron ore) have also come down."

Net sales of the company too declined by 48.5% to Rs 1,517.19 crore during the quarter compared to Rs 2,944.39 crore in the year-ago period, NMDC said in a filing to the BSE.

The company's revenue from iron ore during the quarter dropped to Rs 1,485.96 crore from Rs 2,907.79 crore in the year-ago period. Its revenue from other minerals and services also declined to Rs 31.23 crore during the quarter under review from Rs 41.07 crore in the October-December quarter of previous fiscal.

The miner had cut prices of ore by Rs 300 to Rs 1,800 a tonne in December due to subdued demand and weak global cues.

The public sector unit (PSU) has reduced the prices of higher grade iron ore by 57% to Rs 1,800 a tonne for December last year as compared to Rs 4,200 a tonne in January 2015. Considering the global iron ore supply-demand scenario, analysts had predicted a downward revision in prices by NMDC.

In a separate filing to BSE, the company said its board "has declared the first interim dividend at the rate of Rs 9.50 per equity share of face value of Rs 1 each for the financial year 2015-16." The first interim dividend declared shall be paid/dispatched as per the provisions of the Companies Act, 2013, it said.

On Friday, the stock of NMDC closed down 0.76% or Rs 0.60 at Rs 78.70 on the BSE. 

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