NMDC reports weak Q1 result

NMDC reported 54.67% slide in net profit to Rs 531.01 crore on 40.67% fall in total income to Rs 2,009.27 crore in Q1 June 2020 over Q1 June 2019.

NMDC said the COVID-19 had an impact on the operations of the company during the current quarter ended 30 June 2020. There has been a loss of around 18.23 lakh tonne of production and 23.94 lakh tonne of sales of iron ore.

Consolidated EBITDA dropped 58% to Rs 826 crore in Q1 June 2020 from Rs 1,989 crore in Q1 June 2019. EBITDA margin contracted to 43% in Q1 June 2020 from 61% in Q1 June 2019.

Consolidated profit before tax came at Rs 759 crore in quarter ended 30 June 2020, falling 60% from Rs 1913 crore in quarter ended 30 June 2019.

The iron ore production dropped 22% to 66.05 lakh tonnes (LT) from 84.28 LT. The iron ore sales skid 28% to 62.75 LT from 86.69 LT.

Shares of NMDC are trading 9.17% higher at Rs 104.80 on BSE. The result was announced after market hours yesterday, 27 August 2020.

NMDC is India's single largest iron ore producer, presently producing about 35 million tonnes of iron ore from 3 fully mechanized mines, two located in Chhattisgarh and one in Karnataka. As of 30 June 2020, the Government of India held 69.65% stake in the mining company.

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