NMDC net profit jumps over 77 pc to Rs 1,576.70 cr in Dec quarter

Bengaluru: State-run miner NMDC on Thursday said its standalone net profit jumped 77.85 per cent to Rs 1,576.70 crore during the December 2018 quarter, on higher income.

The company had clocked Rs 886.53 crore net profit during the year-ago quarter, NMDC said in BSE filing.

Its total income grew to Rs 3,785.57 crore, from Rs 2,580.17 crore a year ago.

Total expenses were at Rs 1,574.10 crore, against 1,347.52 crore in the December 2017 quarter.

The company further said operations at its Donimalai iron ore mine in Karnataka are suspended at the moment.

"The Karnataka government, while renewing the lease of the company's Donimalai iron ore mine, imposed a new condition asking for a premium of 80 per cent on the average sale value. As the demand of the state government is against the MMDR Act, the company requested the government to reconsider its decision. Since there was no response, the company has suspended its operations from November 4 2018 and moved the High Court of Karnataka praying for a suitable direction in the matter. The outcome of the Hon'ble High Court is awaited," NMDC said.

Earlier this month, the iron ore producer said its board has approved a Rs 1,000-crore share buyback plan.

It will buy back 10.20 crore shares at Rs 98 apiece from shareholders.

NMDC, the country's largest iron ore producer, produces about 30 million tonne of iron ore from 3 fully mechanised mines.

The government holds 72.43 per cent in NMDC.