NMDC Q2 results: Firm reports 10% rise in PAT at Rs 774 crore

Mumbai: State-owned iron ore producer, NMDC Ltd has reported a 10% rise in consolidated profit after tax (PAT) for the September quarter of FY 21 at Rs.774 crore against Rs. 703 crore reported during the same period last year.

“At NMDC, we have taken various steps to reduce costs, improve output and maximize the profitability with and are hoping to excel in the next two quarters and set new records in production,” said the company’s managing director, Sumit Deb in a media statement.

The company’s consolidated profit grew by 45% when compared to Rs 533 crore reported during the June quarter. The company’s earnings before interest, taxes, depreciation and amortization dropped by 6% at Rs 1,118 crore during the quarter under review.

NMDC’s turnover during the 2nd quarter of FY21 was recorded at Rs. 2,230 crore as against the turnover of Rs. 2,242 crore for the same period last year.

The company's production during the quarter increased by 13% YoY at 56.37 lakh tonnes and sales grew by 14% YoY at 66.02 lakh tonnes.

“NMDC has been able to outperform both production and sales over the CPLY. In this quarter, NMDC produced 5.64 million tonnes (MT) of iron ore and sold 6.60 million tonnes (MT),” said the company in a statement.

Domestic production of iron ore in India was down by around 47% in the first half of FY21 when compared with last year, whereas NMDC reported a drop of 9%. NMDC has produced around 16% of India’s total iron ore production in (H1) of 2020-21, the company said.