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State-run iron ore miner NMDC today reported 48 per cent drop in standalone net profit at Rs 810.24 crore for the quarter ended September 30, 2015.
The company had clocked a net profit of Rs 1,566.75 crore during the same period a year ago, it said in a BSE filing.
Total standalone income of the firm declined 48 per cent to Rs 1,602.23 crore in the July-September quarter this fiscal from Rs 3,105.05 crore during the same quarter of 2014-15.
The miner paid Rs 135.96 crore as contribution towards the District Mineral Foundation and the National Mineral Exploration Trust fund.
Shares of the company today fell by 2.41 per cent to settle at Rs 90.95 apiece at the BSE.
According to analysts, NMDC’s performance has been impacted by a subdued economy, which has impacted industry sentiment leading to a weak demand for steel thereby affecting prices of iron ore -- a key ingredient in steel making.
NMDC has slashed prices of iron ore fines by over 52 per cent to Rs 1,460 per tonne for October as compared to Rs 3,060 a tonne in January this year as it faces subdued ore demand.
The price of the higher grade iron ore (lumps) has been reduced by 41 per cent to Rs 2,500 per tonne for October 2015 compared to Rs 4,200 a tonne in January this year.
Considering the global iron ore supply-demand scenario, analysts are of the view that a further downward revision in prices by NMDC is possible in the near term.
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