NMDC Limited has posted a huge drop in its net profit at Rs 655.04 crore for the quarter ended December 31, 2015 as against Rs 1593.01 crore it logged for the corresponding quarter last year on a standalone basis.
Total Income has decreased from Rs 2946.05 crore achieved during the quarter ended December 2014 to Rs 1517.19 crore for the quarter ended December 2015.
The performance of the iron ore mining major has been impacted by several key developments which include low prices ruling in the global market, poor demand from steel makers and cheaper imports.
Last fiscal ended March 31, 2015, the iron ore mining company had closed with a turnover of Rs 12,356.46 crore and a net profit of Rs 6421.86 crore.
The NMDC Board at its meeting today has recommended highest ever 1st interim dividend of 950 per cent for the year 2015-16 amounting to Rs 3,766 Cr.
As per the gazette notification dated March 27, 2015 enacted by the Mines and Minerals (Development and Regulation) Amendment Act, 2015, and other notifications, the company has to pay 30 per cent of royalty towards District Mineral Foundation and 2 per cent royalty towards National Mineral Exploration Trust with effect from January 2015.
Consequently, for the nine months ended December 2015, Rs 205.83 crore payable to the Government towards Royalty and other levies and Rs 178.95 crore recoverable from the customers has been accounted for under income from operations.
NMDC shares closed the day marginally down at Rs 78.70.