May 28 (Bloomberg) -- NMDC Ltd., India’s largest iron-ore producer, reported a 22 percent drop in fourth-quarter profit after increased production from its mines in the southern state of Karnataka failed to counter sliding prices.
Net income fell to 16.4 billion rupees ($297 million), or 4.14 rupees a share, in the three months ended March 31 from 21 billion rupees, or 5.29 rupees, a year earlier, the company based in the southern city of Hyderabad said today in a statement. The average profit estimate of 12 analysts surveyed by Bloomberg was 16.9 billion rupees. Sales declined 31 percent to 25.9 billion rupees.
The cash price of 62 percent-content iron ore delivered to Tianjin port in China, the biggest consumer, averaged 20 percent lower in the last quarter from a year earlier, according to Steel Business Briefing. NMDC raised production after the nation’s top court in August ruled the state-run company would be the only miner in Karnataka.
Total costs at NMDC tumbled 39 percent to 6.49 billion rupees, according to the statement. Income from sources other than its main business gained 24 percent to 5.47 billion rupees.
NMDC shares fell 1.7 percent to 167.85 rupees at the close in Mumbai. The stock has gained 4.3 percent this year, compared with a 6.2 percent gain in the key Sensitive Index.
The earnings were announced after the markets closed.
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