NMDC Q2 net lower at Rs. 771 cr

12 December 2016

NMDC has posted a lower net profit of Rs. 770.76 crore for the second quarter ended September 30, 2016 as compared to Rs. 816.65 crore it registered for the corresponding quarter last year on a standalone basis.

Total Income of the iron ore mining major has decreased from Rs. 2,039.11 crore for the quarter ended September 30, 2015 to Rs. 2,012.64 crore for the quarter ended September 30, 2016.

The Board of Directors on June 7 2016 had approved buyback of 80,08,25,526 equity shares at Rs. 94 for a total consideration of Rs. 7,527.76 crore.

The buyback offer of shares was closed on September 30, 2016. And provision for the liability in respect of the consideration for buyback has been accounted in the current quarter adjusting the other equity.

The process of buyback has been completed on October 10 2016. consequently, the equity share capital of the company stands reduced to Rs. 316.39 crore.

The Ministry of Steel has recently assigned additional charge of the post of Chairman and Managing Director, NMDC Limited to R Sridharan, Special Secretary, Ministry of Mines, till a regular incumbent is appointed or until further orders, whichever is earlier.

NMDC shares closed the day at Rs. 126.55, down 1.6 per cent at BSE.

Source – BL