NMDC’s Profit After Tax (PAT) declined by 55% to INR 533 crore for the quarter ended June 30 as against INR 1,179 crore registered in the comparable period of FY20.
Also, the public sector miner’s Profit before Tax (PBT) plunged by 60% to INR 759 crore compared with INR 1,913 crore achieved in the same period of last fiscal.
NMDC also reported a drastic fall in its turnover for Q1 of this fiscal at INR 1938 crore, a fall of 68.4% against INR 3264 crore recorded in the corresponding period of FY20.
NMDC’s lacklustre performance could be attributed to the nationwide lockdown that dented both production and sales of iron ore. The iron ore miner clocked a loss of 1.82 million tonne in production and 2.39 million tonne of sales. This has resulted in an estimated loss in sales revenue of INR 737 crore and PBT of INR 317 crore for the company.
Nationwide, the iron ore output shrunk by 45% while for NMDC, the production was down 22% year-on-year during April-June quarter of this fiscal. NMDC accounted for around 20 per cent of the country’s iron ore production during this period.
Sumit Deb, CMD, NMDC said, “This is a difficult year with the pandemic creating unprecedented situations. I am happy that our performance remains stable despite the challenges we are facing. I am certain we will see marked improvement in our performance in the following quarters with the conditions getting normalised.”
During Q1 of the current fiscal, NMDC produced 6.6 million tonne and sold 6.27 million tonne of iron ore.
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