NMDC, on Monday, reported a decline of 21.74 per cent in net profit to Rs.1,642.28 crore for the fourth quarter ended March 31, 2012, largely due to lower realisations on sale of iron ore. It had reported a net profit of Rs.2,098.62 crore in the same quarter in 2010-11.
Net sales were down 45.35 per cent at Rs.2,593.65 vis-a-vis Rs.3,769.75 crore, it said in a filing to the BSE.
Besides, the company incurred a loss of Rs.51.30 crore during the quarter on impairment of windmills in Karnataka, which were pending re-commissioning, it said.
For 2011-12 fiscal, the company reported a growth of 11.79 per cent in net profit at Rs.7,265.39 crore against Rs.6,499.22 crore in the previous year, largely due to higher production of iron ore.
Net sales were marginally lower by about 1 per cent at Rs.11,261.89 crore against Rs.11,369.31 crore. The company produced 27.26 million tonnes of iron ore, a growth of 7 per cent over the previous year's 25.16 million tonnes.
For the current financial year, the company is targeting to produce about 30 million tonnes of iron ore and has kept a capex of Rs.4,655 crore.
Of this, it intends to spend Rs.3,513 crore on its upcoming 3 million tonnes per year steel plant in Chhattisgarh's Nagarnar, while the balance will be used on existing mines in Chhattisgarh and Karnataka.
The board has recommended a dividend of Rs.4.50 per share of Re.1. This includes interim dividend, announced earlier, of Rs.2 per share.
The company plans to sell the plant and machinery of Silica sand project, Lalapur and UPFO plant at Vizag and has initiated the process, it added.