Covid-19 impact: NMDC profit drops 55% in June quarter

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August 28, 2020 12:01 AM

While the iron ore business reported Rs 1,922.89-crore revenue, down from Rs 3,212.14 crore a year earlier, profit from the business fell to Rs 949.94 crore from Rs 1,904.69 crore a year earlier. The pellet business contributed the remaining.

Sumit deb is new CMD of NMDC, assumes charge on 1st august“I am certain we will see marked improvement in the following quarters with the conditions getting normalized,” chairman and MD Sumit Deb said.

Impacted by subdued sales and realisation amid the pandemic, state-run iron ore miner NMDC on Thursday reported a 55% decline in net profit and a 40% drop in turnover for the April-June quarter of the current fiscal.

While its profit after tax (PAT) declined to Rs 533 crore during April-June of the current fiscal from `1,179 crore a year earlier, its turnover also fell to Rs 1,938 crore from Rs 3,264 crore.

NMDC had reduced the price of iron ore by Rs 900 per tonne cumulatively in April and May, which impacted its realisation.

“Due to the nationwide lockdown, both production and sales were impacted in the first quarter. There has been a loss of around 18.23 lakh tonne (LT) production and 23.94 LT sales. This has resulted in an estimated loss in sales revenue of Rs 737 crore and PBT of Rs 317 crore,” NMDC said in a statement.

NMDC reduced iron ore prices, produced 66.05 LT iron ore and sold 62.75 LT of the steel-making raw material during the quarter.

While the iron ore business reported Rs 1,922.89-crore revenue, down from Rs 3,212.14 crore a year earlier, profit from the business fell to Rs 949.94 crore from Rs 1,904.69 crore a year earlier. The pellet business contributed the remaining.

NMDC contributed Rs 150 crore to the Prime Minister’s Citizen Assistance and Relief in Emergency Situation Fund during the current period ended June 30.

“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 the following quarters with the conditions getting normalized,” chairman and MD Sumit Deb said.

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