By IANS,
Mumbai : 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.