The state run trading giant MMTC on Friday posted 84.4 per cent decline in its net profit at Rs 15.35 crore for the quarter ended March 2011, due to increase in its expenditure.
During the January—March quarter 2009—10, the company’s profit after tax stood at Rs 98.95 crore.
During 2010—2011, the company registered a decline of 48 per cent in its net profit at Rs 112.77 crore, as against Rs 216.24 crore in the previous fiscal.
“MMTC’s profitability has also been adversely affected due to increased expenditure on salaries and overheads during 2010—11,” the company said in a statement.
The company reported a 2.4 per cent dip in its trading profit at Rs 309.70 crore in the last fiscal on lower mineral exports, the main contributor to the firm’s bottom line, due to a ban on iron ore exports from Karnataka for eight months in the last fiscal.
It has resulted into a decrease of about 50 per cent to three million tonnes in iron ore exports in 2010—11 compared to six million tonnes in the previous year, it said.
However, MMTC recorded a 52 per cent growth in its turnover to Rs 68,687 crore in the last fiscal.
The company’s net worth rose to about Rs 1,400 crore with zero long term debts, it added.
The government is likely to sell about 10 per cent of its stake in the trading giant MMTC in September—October, the Commerce Ministry had said.