NMDC has posted a consolidated net profit of ₹347 crore for the quarter ended March 31, 2020.
A decline of 76% compared to ₹1,451.81 crore in the year earlier period, the profit was impacted as the public sector mining major had opted to settle a dispute relating to Direct Tax under the Vivad Se Vishwas Scheme. Accordingly, ₹795 crore was paid as part of the settlement in the quarter, reducing the PAT, the company said in a statement on Tuesday. Revenue from operations of the country’s largest iron ore producer for the quarter was ₹3,187.34 crore, or 33% lower from the ₹3,643.32 crore of the year earlier period. For 2019-20, consolidated net profit at ₹3,601.52 crore was 22% lower in comparison to ₹4,637.07 crore of previous fiscal. Revenue from operations at ₹11,699.22 crore (₹12,152.67 crore) declined 3.73%.
NMDC produced 31.49 million tonnes and sold 31.51 MT of iron ore during 2019-20 against 32.36 MT production and 32.36 MT sales of the previous fiscal.
On COVID-19 impact on performance, the company said the lockdown impacted last few days of FY20. There was a loss of around 10 lakh tonne of production and 5.50 lakh tonne of sales in March 2020. This resulted in an estimated loss in sales revenue of ₹220 crore and profit before tax of ₹120 crore.
The company’s production of iron ore during the fourth quarter was 9.47 MT, a decline of 11% compared to the year earlier period while sales of iron ore at 8.62 MT was lower by about 15%.
Chairman-cum-managing director N. Baijendra Kumar said it was a “tough quarter with all the disruptions and the disturbances. I am happy with the stable performance despite the challenges. During the quarter, we focused on empowering our workforce, technological upgradation and we will see marked improvement in our performance in following quarter.”
On the renewal of the lease of Donimalai Iron Ore Mine, the company said even though the company is regularly corresponding with the Karnataka government, response of the government is awaited. At the last hearing at the Mines Tribunal on March 4, the State government requested adjournment up to March 24. No further hearings could take place due to the COVID-19 situation.
On the tax settlement, the notes accompanying the results said the company had opted to settle income tax disputes under the Vivad Se Vishwas scheme. As against total disputed amount of ₹1,869 crore for assessment years up to 2017-18, an amount of ₹981 crore had been paid in full settlement of the disputes. This has an impact in reduction of 2019-20 profit after tax by ₹795 crore.