NMDC reports 2 pc hike in 9M FY20 profit at Rs 3,259 crore

State-owned NMDC Ltd said on Monday its profit after tax in the first nine months of current financial year (9M FY20) registered a nominal growth of 2 per cent at Rs 3,259 crore.

In 9M FY19, it had clocked profit after tax of Rs 3,188 crore. The profit before tax reduced by 7 per cent to Rs 4,640 crore from Rs 5,001 crore in the same period.

The turnover of Rs 8,512 crore for 9M FY20 marginally surpassed the figure of Rs 8,509 crore in 9M FY19 despite non-operation of Donimalai mines.

In quantity terms, iron ore production totalled 22.02 million tonnes compared to 21.77 million tonnes while sales moved up marginally to 22.9 million tonnes from 22.19 million tonnes.

During the third quarter of current fiscal (Q3 FY20), profit after tax slipped to Rs 1,376 crore from Rs 1,577 crore year-on-year while profit before tax dipped to Rs 1,647 crore from Rs 2,211 crore.

The sales turnover went down to Rs 3,006 crore from Rs 3,649 crore in Q3 FY19. The company has declared an interim dividend of Rs 5.29 per share.

Chairman and Managing Director N Baijendra Kumar said the company will strive to meet the targets set for the current financial year.

NMDC (earlier known as National Mineral Development Corporation) is India's single largest iron ore producer, producing over 35 million tonnes of iron ore from three fully mechanised mines in Chhattisgarh and Karnataka.

The navratna public sector enterprise is now diversifying into steel making.