NMDC Hints for Resilient Q1 FY21 Result

Hyderabad India - National Mineral Development Corporation (NMDC) produced around 66 lakh tonnes and sold about 62 lakh tonnes of iron ore during the first quarter of the financial year 2021. Its profit before tax for the first quarter fell by 60 per cent with Rs. 759 crore versus Rs. 1913 crore previous year. In addition, 55 per cent decrease in profit after tax for the first quarter with Rs. 533 crore against Rs. 1179 crore in the same period last year.

NMDC’s turnover during the first quarter of 2020-21 is Rs. 1938 crore compared to a turnover of Rs. 3264 crore of the corresponding period last year. The performance of the company was largely affected by the COVID-19 pandemic, which imposed nationwide lockdown and restrictions. There has been a loss of around 18.23 lakh tonnes of production and 23.94 lakh tonnes of sales. This has resulted in an estimated loss in sales revenue of Rs. 737 crore and profit before tax of Rs. 317 crore. Nationally iron ore output in the first quarter of 2020-21 is down by 45 per cent compared to last year, whereas NMDC’s fall is 22 per cent, producing around 20 per cent of India’s total iron.

“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 a marked improvement in our performance in the following quarters with the conditions getting normalised,” explained Sumit Deb, CMD, NMDC.

Image Source: NMDC

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