Boosted by the huge surge in net profit, the Government-owned iron ore miner NMDC has announced rewarding its shareholders with second interim dividend at 550 per cent.

It means each of the share with the face value of ₹1 will earn ₹5.50. With this, the company has so far declared interim dividend of 850 per cent for the current fiscal.

In the meantime, the company has reported an increase in its net profit by 21 per cent during three-month period ending December 31, 2013.

It went up to ₹1,567 crore from ₹1,293 crore in corresponding period of 2012-13. Its turnover increased to ₹2,823 crore from ₹2,048 crore showing a growth of 38 per cent.

Now, the company is expecting to exceed its production target for the year as a whole.

"NMDC is in its stride to reach production of iron ore of 30 million tonnes for the year 2013-14 which would be a record in itself for NMDC in spite of evacuation hurdles," the Chairman and Managing Director CS Verma told reporters here.

The company has achieved a capital expenditure of ₹1,679 crore for the nine-month period ending December 31, 2013.

This is highest in three quarters so far, Verma mentioned. Now, the company is confident of meeting expenditure target of ₹2,720 crore for the year as a whole.

As part of its expansion programme, the company is developing two new mines, Bailadila sector in Chhattisgarh and Bellary-Hospet region in Karnatka.

Besides, orders have already been placed for setting up of 1.2 million tonnes a year capacity pelletisation plant in Karnataka.

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