New Delhi: (NMDC Quarterly Results) Navratna steel mining PSU and the country's largest iron ore producing company NMDC Limited on Wednesday announced its financial performance for the second quarter of the current financial year (Q2 FY2020-21). During the period the PSU has delivered strong operating performance, with a 13 percent and 14 percent increase in production and sales respectively. In-spite of adversities due to COVID and incessant monsoon in Chhattisgarh, NMDC has been able to outperform both production and sales over the CPLY. In this quarter (Q2), NMDC produced 5.64 million tonnes (MT) of iron ore and sold 6.60 MT.
However, NMDC's turnover during the Q2 FY21 is Rs 2,230 crore as against the turnover of Rs 2,242 crore of the corresponding period last year (CPLY). NMDC's Profit Before Tax (PBT) for the Q2 of 2020-21 is Rs 1,063 crore against Rs 1,080 crore during Q2 of 2019-20, a decrease by 2 percent. Profit after Tax (PAT) for Q2 of 2020-21 increased by 10 percent to Rs 774 crores against Rs 703 crores during Q2 of 2019-20.
Along with this NMDC has announced a buyback of 13,12,43,809 fully paid-up equity shares for Rs 105 per share. The buyback offer is at a 12% premium to Tuesday's closing price of Rs 94 per share. On Wednesday, the share prices closed at Rs 90.80 per share. The buyback represents 4.29% of the total number of fully paid-up equity shares. The Government of India owns 69.65% shares in NMDC, the PSU operates under the administrative control of the Ministry of Steel.
Domestic production of iron ore is down by around 47 percent in 2020-21 (H1) when compared with CPLY, whereas NMDC has been able to outperform the industry and had a drop of only 9 percent. NMDC has produced around 16 percent of India's total iron ore production in (H1) of 2020-21.
NMDC's Chairman & Managing Director (CMD) Sumit Deb expressed satisfaction at the overall results and said that "NMDC's production continued without interruption despite the adverse situations we faced, providing for yet another strong operating quarter due to our realigned strategy and focus on optimum utilization of resources." NMDC has taken various steps to reduce costs, improve output and maximize the profitability with and hoping to excel in the next two quarters and set new records in production, he added.
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