NMDC Ltd’s performance for the first quarter ended June 30, 2020 was impacted due to the Covid-19 induced lockdown with production, revenue and profit taking a hit.

The iron ore major posted profit of ₹533 crore for the first quarter ended June 30, 2020, registering a steep fall of 55 per cent as against ₹1,179 crore recorded the the corresponding quarter last year.

The turnover during Q1 was down at ₹1,938 crore as against ₹3,264 crore recorded the same period last year. The company produced 66.05 lakh tonnes and sold 62.75 lakh tonnes (lt) of iron ore during Q1FY21.

Production hit

Due to the nationwide lockdowns, both production and sales were impacted. The company estimated there has been a loss of around 18.23 lakh tonnes of production and 23.94 lt of sales. This has resulted in an estimated loss in sales revenue of ₹737 crore and PBT of ₹317 crore.

While the iron ore output across the country was down by 45 per cent in Q1 2020-21, NMDC witnessed the fall at 22 per cent. NMDC produced around 20 per cent of India’s total iron ore production during Q1.

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

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