Sluggish bauxite demand drags GMDC profits down 40% in Dec 2015 quarter

The Indian government-owned mineral exploration and development company has reported weaker year-on-year results for the final three months of last year as the Gujarat-based miner succumbed to slowing demand and weakening commodity prices.

Gujarat Mineral Development Corporation Ltd. (GMDC) has recorded a 40 per cent drop in net profit for the three months ending 31 December 2015, the third quarter of the Indian fiscal year, with the company’s total income falling by 16 per cent over the same period. The company attributes this decline in profit and total income to sluggish demand for commodities such as fluorspar and bauxite.

The whole of mining and commodities market has been experiencing a freefall which has taken a serious toll on the respective value chains across economies, barring China where the appetite for the ore seems to be growing bigger. India has been no exception to this. Prices too have hit the bottomlines of the players operating in this sector. According to industry experts, no relief from this situation can be expected in the near term.