The Hindu Business Line : MMTC records Rs 26,276-cr turnover in 2007-08

New Delhi, April 18 In the just-ended fiscal 2007-08, the largest global trading company of India, MMTC has logged a turnover of Rs 26,276 crore, against Rs 23,302 crore in the previous year. The turnover of Rs 26,276 crore includes MMTC’s exports of Rs 3,925 crore, imports of Rs 20,323 crore and domestic sales of Rs 2,028 crore.

A company release issued after the board of directors meeting held here on Thursday said the metals and minerals trading major also posted profit of Rs 418.66 crore, registering a growth of 68 per cent, in 2007-08 over the preceding year. MMTC earned net profit after tax of Rs 206.15 crore, which is the highest ever net profit generated by MMTC since its inception in 1963, registering a growth of 63 per cent over the net profit after tax of Rs 126.80 crore recorded during 2006-07.

Q4 performance

For the quarter ended March 31, the company clocked a turnover of Rs 9,391 crore which is highest ever quarterly turnover, an increase of 92 per cent over the corresponding quarter of 2006-07. Similarly, the quarterly net profit was also Rs 90.62 crore, highest ever and up by 133 per cent compared to the corresponding quarter of 2006-07. The company’s net worth as on March 31, rose to over Rs 1,070 crore, with zero long-term debt. The earnings per share were Rs 41.23 per share of face value Rs 10 each.

MMTC officials attributed the improved performance to the success of its strategic initiatives reflecting the value creation through effective combination of goods, services and investment with enhanced focus on profitability. The broad-based growth in all business lines, debt-free capital structure with adequate cash reserves and a sound net worth provided a robust base for the company’s future growth.

The board of directors of MMTC has also approved a proposal for setting up a joint venture company with Tata Steel Ltd for exploration and development of mines for minerals, ferrous and non-ferrous ores, precious metals, diamonds and coal etc following the PPP route.

MMTC is also setting up a silver/gold medallion and jewellery manufacturing unit in collaboration with a producer of international repute, which would include a gold/silver refinery as an integral part. The project is being set up in Haryana and is likely to be operational by the last quarter of 2009.

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