State-owned NMDC on Thursday said its net profit for the quarter ended December 31 was up by 78 percent to Rs 1,557 crore against Rs 887 during the same quarter last fiscal.
According to a regulatory filing, the miner said the total income during the quarter under discussion grew by about 47 percent to Rs 3,786 crore.
Elaborating on the numbers, Amitava Mukherjee, Director-Finance of the company, said that the numbers in Q3 are "very encouraging".
“Keeping in view the overall decreasing trend both in steel prices and the other miners, we thought to drive the volume or at least to keep them at the level that we are, we need to take a price cut,” he explained.
Talking further about price cut, Mukherjee said, “Our prices move in tandem with steel prices and steel prices in January moved down, so we had to make a correction there.”
On mining lease front, he said, “In Odisha all the mining leases are coming to an end in 2020 and there has been a production ramp-up in that area and the miners from that area have reduced their prices.”
“So the overall market scenario has been of downward price trend in January and despite what is happening in the international sector, we could not keep ourselves insulated to such price cut,” he further added.(With inputs from PTI)