Hyderabad, Feb 13 (IANS) India's largest iron ore producer National Mineral Development Corp's net profit has dropped by 30 percent year-on-year during the third quarter ended Dec 31, 2012, due to low production and subdued market conditions.
The profit after tax was Rs.1,293 crore for the Q3 of the current fiscal against Rs.1,859 crore for the corresponding period last year.
NMDC chairman C.S. Verma told reporters here Wednesday that the turnover fell by 27 percent year-on-year. It was Rs.2,048 crore during the quarter against Rs.2,822 crore during the same quarter last year.
The production also came down from 7.14 million tonnes to 5.36 million tonnes. He attributed this to heavy rains in the Bailadila mines, which contribute 80 percent of the company's production, and low off-take by customers.
"Both physical and financial performance has gone down mainly due to low take-off of iron ore by customers and evacuation problem mainly from the Bailadila projects," said a statement after the board of directors of the company approved the quarterly results.
The production for the three quarters of 2012-13 has been 17.6 million tonnes against 20.2 million tonnes for the corresponding period last year. With the company achieving during last month the highest-ever production (three million tonnes) in any single month since its inception, it is hopeful of making up during the fourth quarter the loss of production in the first three quarters.
Verma was confident of 26 million tonnes production during the current fiscal as against 27 million tonnes last year.