NMDC has logged 22% decline in net profit for 2019-20 at INR 3610 crore compared to INR 4642 crore in FY19. The navratna company’s Profit before Tax (PBT), too, fell 15 per cent in FY20 at Rs 6122 crore compared with Rs 7198 crore in FY19.
In Q4 of FY20, NMDC recorded a steep fall of 76% in net profit at INR 351 crore whereas PBT was also down 33% at INR 1482 crore.
The company’s turnover at INR 11,699 crore for 2019-20 was a decline of 3.73 per cent compared to INR 12153 crore achieved in FY19. NMDC has opted to settle dispute relating to Direct Tax under Vivad Se Vishwas Scheme and accordingly, an amount of INR 795 crore was paid in Q4 of 2019-20, thus reducing the net profit.
The audited financial results for 2019-20 were approved by the Board of Directors of the Company under the Chairmanship of N Baijendra Kumar, CMD, NMDC in its meeting held on June 16.
Commenting on the performance, Kumar said, “This was a tough quarter with all the disruptions and the disturbances. I am happy with the stable performance despite the challenges faced during this year. During this quarter, we focused on empowering our workforce, technological upgradation and we will see marked improvement in our performance in the following quarters.
Due to nation-wide lock down, the last few days of FY-20 were impacted. There has been a loss of around 10 lakh tonnes of production and 5.50 lakh tonnes of sales in March 2020. This has resulted in an estimated loss in sales revenue of INR 220 crore and PBT of INR 120 crore.
The company’s production of iron ore during Q4 of FY20 is 9.47 mn t registering a decrease of 11% over the corresponding period of last year (CPLY) while sales of iron ore was 8.62 mn t which is about 15% less than that of the CPLY.
NMDC has produced 31.49 mn t and sold 31.51 mn t of iron ore during 2019-20 against production of 32.36 mn t and sales of 32.36 mn t during the previous year.
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