Our prospective JV partner, NMDC Ltd, has had a good year:"NMDC...

Our prospective JV partner, NMDC Ltd, has had a good year:

"NMDC Q4 net profit nearly doubles to Rs 2,099cr
PTI ? Fri, May 27, 2011

New Delhi, May 27 (PTI) State-run NMDC Ltd today reported a whopping 97 per cent jump in Q4 net profit to Rs 2,098.62 crore on record sales in any quarter and said the trend could be maintained as iron ore prices are likely to remain stable in the current fiscal.

Announcing financial results, NMDC Chairman and Managing Director Rana Som attributed the rise in net profit to higher production, sales and "comfortable" price of the key steel making raw material.

NMDC had reported Rs 1,066 crore net profit in the same quarter a year ago.

"During the fourth quarter of last fiscal, our production and sales were 8.58 million tonnes and 8.42 million tonnes respectively, which are a record in the company''s history. Prices were also comfortable," Som said.

The rise in production and sales is 24 per cent and 22 per cent higher than the corresponding quarter of the previous fiscal.

Net sales of the company during the quarter also nearly doubled to Rs 3,769.75 crore vis-a-vis Rs 1,983.33 crore in the January-March quarter of the previous fiscal.

Year-on-year, NMDC''s sales rose to Rs 11,369 crore in the last fiscal over Rs 6,239 crore in FY''10. Net profit also went up to Rs 6,499 crore compared to Rs 3,447 crore in FY''10.

"This is a sustainable trend. We are confident that this trend will be maintained in the current fiscal," Som said.

The production and sales of NMDC during 2010-11 were at 25.16 million tonnes and 26.32 million tonnes representing an increase of six per cent and nine per cent, respectively over 2009-10.

Talking about the price of the iron ore in the current fiscal, Som said that the last 8-9 month''s trend only pointed to a "very little" fluctuation and even when it was there, the range was "very small".

"In case, prices go down, there is a huge demand for our products, which are regarded, in certain cases, as good as pellets," he said."

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