NMDC net almost flat at Rs 975 cr in April-June quarter

NMDC today posted almost flat net profit of Rs 975.27 crore on standalone basis for the quarter ended on June 30, 2018, compared to the year ago period.

The standalone net profit of the company was Rs 969.20 crore in the quarter ended on June 30, 2017, a BSE filing said.

Total income of the company came down to Rs 2,547.13 crore in the quarter from Rs 2,970.13 crore a year ago.

It said that the company has been legally advised that there is no impact of Supreme Court judgement with reference to the Writ Petition (Civil) No 114/2014 dated August 2, 2017 on the NMDC.

However, it said that in case it is found applicable to the NMDC at a later date, it may impact the profits of the Company.

Meanwhile, it said that the Bailadila Projects of the NMDC have received the Show Cause Notices on July 31, 2018 from District Collector Dantewada as to why NMDC should not be asked to deposit an amount of Rs 7,241 .35 crore as compensation as calculated by Collector based on the judgement.

The NMDC has been asked to submit its response by August 31, 2018. As per the legal opinion received, the said compensation is not applicable to the NMDC and hence it will seek legal recourse and contest before The Collector, Dantewada and other appropriate authorities, it added.

It also said that a total amount of Rs 29.12 crore is included under the head "Other Expenses" towards expenditure on enabling facilities towards doubling of railway line between Kirandul and Jagdalpur and railway line between Jagdalpur and Ambagaon, required for augmentation of evacuation capacity of Bailadila sector.

An amount of Rs. 25.82 crore is provided towards expected credit loss (ECL) and included under the head "Other Expenses". An amount of Rs 11 .12 crore is provided towards mines closure obligation and included under "Other Expenditure", it said.