InvestorQ : Why have NMDC profits fallen so sharply in the Mar-20 quarter?
diksha shah made post

Why have NMDC profits fallen so sharply in the Mar-20 quarter?

Answer
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Dilmini Mercia answered.
3 months ago


National Mineral Development Corporation, NMDC, has reported 76% fall in net profits to Rs.347 crore for the Mar-20 quarter. It is one of India’s largest state-owned mining companies. Even full year profit before tax or PBT of NMDC was down 15% at Rs.6198 crore. NMDC’s overall production this fiscal year was marginally lower at 31.49 million tonnes. The loss of production was only about 10 lakh tonnes as the lockdown only impacted the last one week of March, translating into revenue loss of Rs.220 crore. However, the impact is likely to be much bigger in the June and September quarters. While June quarter is likely to be directly impacted by the lockdown, the lag effect of the lockdown and the supply chain constraints will be pronounced in the September quarter also. The main reason for the profit fall was the higher costs that be absorbed due to lower off-take.