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NMDC's profit after tax (PAT) declined by 55% in Q1 FY’21

NMDC Limited has recorded a 55 percent decline in profit after tax (PAT) for the Q1 of FY’2020-21 against the same period of FY’2019-20

NMDC's profit after tax (PAT) declined by 55% in 1Q FY’21

New Delhi: NMDC Limited, a Navratna PSU under the Ministry of Steel, on Thursday announced its quarterly performance for the first quarter of the current financial years (Q1 FY’21). During this period the company has produced 66.05 lakh tonnes and sold 62.75 lakh tonnes of iron.

NMDC’s profit before tax (PBT) for the Q1 of 2020-21 is Rs 759 crore against Rs 1,913 crore during Q1 of 2019-20, decrease by 60 percent. Similarly, profit after tax (PAT) for the Q1 2020-21 is Rs 533 crore against Rs 1179 crore during Q1 of 2019-20, decrease by 55 percent.

NMDC’s turnover during the 1st quarter of 2020-21 is Rs 1938 crore compared to the turnover of Rs 3,264 crore in the corresponding period last year (CPLY).

Impact of COVID-19 on the performance of the company:

Due to nation-wide lockdown, both production and sales were impacted. There has been a loss of around 18.23 LT of production and 23.94 LT of sales this resulted in an estimated loss in sales revenue of Rs 737 crore and PBT of Rs 317 crore. 

Nationally Iron Ore output in 2020-21 (Q1) is down by 45 percent when compared with CPLY, whereas NMDC fall is 22 percent.

Further, NMDC produced around 20 percent of India’s total iron ore production for the period 1Q FY’21.

Commenting on the performance, NMDC’s CMD Sumit Deb 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 a marked improvement in our performance in the following quarters with the conditions getting normalised.”

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