The National Mineral Development Corporation (NMDC) Limited has recorded over 31 per cent rise in standalone net profit at Rs 1,453.77 crore for the quarter ended March 2019. The company had posted a standalone profit of Rs 1,105.85 crore in the same period last year
The chairman-cum-managing director of NMDC, N Baijendra Kumar, believes that the recently declared financial results of the company have displayed NMDC’s strong character to bounce back in spite of operational challenges. He was speaking at a press conference in the capital, where he said, “Last year has been extremely good for us as far as fiscal performance of the company is concerned. However, some parameters have been a mixed bag.”
NMDC produced and sold 32.36 million tonnes of iron ore during 2018-19 against the production of 35.58 million tonnes and sales of 36.08 million tonnes during the previous year. The suspension of operation at Donimalai mines in Karnataka was cited as a major reason for reduced production in addition to the loss of man days in the Bailadila sector caused by heavy rainfall. Despite this, the company’s turnover for the year 2018-19 is Rs 12,153 crore against Rs 11,615 crore during 2017-18, registering a growth of five per cent. Without production from Donimalai mines, NMDC expects 31-32 million tonnes during the current fiscal.
NMDC’s profit before tax (PBT) for the year 2018-19 has been recorded at Rs 7,198 crore against Rs 6,179 crore during 2017-18, registering an impressive growth of 17 per cent. Similarly, the profit after tax (PAT) for the year 2018-19 has been recorded at Rs 4,642 crore against Rs 3,806 crore during 2017-18, registering a record growth of 22 per cent. NMDC’s turnover during the fourth quarter is Rs 3,643 crore comparable with turnover of Rs 3,883 crore of CPLY.
The company has recorded PBT of Rs 2,197 crore and PAT of Rs 1,454 crore which are higher by around 10 per cent and 31 per cent respectively over the fourth quarter of CPLY. The company’s production of iron ore during the fourth quarter is 10.59 million tonnes (MT) registering a decrease of seven per cent over CPLY while sales of iron ore was 10.17 MT which is about three per cent less than that of the CPLY.
The officials informed that the operational cost of NDMC is on a par with its global peers—BHP, Rio Tinto, Vale and FMG. Also, its EBITDA margins are comparable to the best in the world, yielding in handsome rewards to the company’s shareholders. “Our performance indicators are comparable to the big global payers in the industry and its is our prices that has given the steel industry in India its edge over the rest. India is in a unique position where we have abundance of iron ore which can be mined and simultaneously have a huge steel producing potential. We have to leverage this,” said an official.
The company has planned for sufficient evacuation capacity to meet the requirements of production ramp up from various capex projects. At Bailadilla in Chhattisgarh, the company is creating a rapid wagon-loading system for evacuation and setting up a new slurry pipeline. It is also in the process of doubling of railway line between Kirundul and Kothavalasa (KK line). The PSU is also setting up screening plants in Karnataka and Chhattisgarh.
The event also highlighted various accolades gathered by the company. NMDC bagged the prestigious S&P PLATTS Global Metals Award for 2019 in Corporate Social Responsibility category for the second consecutive time, becoming the first company to achieve this.