MMTC net profit drops on lower mineral exports

May 13th, 2011 - 4:34 pm ICT by IANS  

Mumbai, May 13 (IANS) State-run trading company MMTC Friday reported a 2.4 percent dip in net profit at Rs.309.7 crore for fiscal 2010-11 owing to lower mineral exports, the main contributor to the firm’s bottom line, and increased wage expenditure.

The company, in a regulatory statement, said the substantial decrease in mineral exports was because of a ban on iron ore exports from Karnataka for about eight months of the last fiscal.

Because of the ban, MMTC’s iron ore exports fell to 3 million tonnes from 6 million tonnes it recorded in 2009-10.

“MMTC’s profitability has also been adversely affected due to increased expenditure on salaries and administrative overheads during 2010-11,” said the statement.

The largest international trading company of the country, MMTC recorded a 52 percent growth in business volumes during the last fiscal, achieving a turnover of Rs.68,687 crore.

The company’s net worth rose to about Rs.1,400 crore with zero long-term debts.

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