Largest iron ore producer NMDC has declared an interim dividend at the rate of 300 per cent, or Rs 3 for every share held.

The dividend comes despite a drop in profit and turnover in the quarter ended September 30 (second quarter).

The drop in profit is attributed to the prevailing market condition, where realisation on the product was low.

Now that there is stability in the market, it will result in better financials in the coming quarters, said Chairman C.S. Verma.

Capex plan

The company’s production during the quarter was 5.94 million tonnes (mt), up 10 per cent compared with the year-ago period. At the same time, sales grew by about 11 per cent to 6.5 mt.

For the first six months (April-September) of the current fiscal, production rose 5 per cent to 12.86 mt, while sales increased by more than 8 per cent to 13.76 mt.

For 2013-14, the company had planned a capital expenditure of Rs 2,720 crore, including Rs 100 crore for foreign acquisitions.

So far, it has incurred a capex of Rs 1,125 crore,

The installation of 3 mt a year steel plant at Nagarnar in Chhattisgarh, as part of NMDC’s forward integration programme and value addition, is also being pursued vigorously.

Orders for major technological packages have already been placed, other auxiliary packages are in advanced stages of finalisation and construction works of the key packages are being undertaken on a war footing, it said.

As part of its expansion programme, NMDC is developing two new mines, one in Bailadila sector in Chhattisgarh—Deposit-11B Iron Ore Project—and the other in Bellary-Hospet region in Karnataka—Kumaraswamy Iron Ore Mine.

Besides, orders have already been placed for setting up a1.2-mt a year pelletisation plant in Karnataka.

> shishir.s@thehindu.co.in

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