State-owned miner NMDC reported an over 31 percent rise in standalone net profit at Rs 1,453.77 crore for quarter ended March 2019. The company had posted a standalone profit of Rs 1,105.85 crore in the year-ago quarter. Total income during the March quarter declined to Rs 3,839.40 crore from Rs 4,053.16 crore in January-March 2018. Total expenses for the latest quarter also fell to Rs 1,641.65 crore from Rs 2,059.84 crore in the year-ago period.
Amitava Mukherjee, director finance, NMDC, shared his views about the performance and the outlook going ahead.
“The first quarter of this year has been very encouraging. April was at an all-time high of around 3 million tonne (mt) for production, the sales have been more than 2.7. We have continued the momentum of March into April comfortably, which has never happened before. So we are looking up now,” Mukherjee said.
In terms of targeted sales volume for FY20, he said, “Without Donimalai mines, it should be anything between 32 and 33 mt and with Donimalai, it should add around 0.5 mt per month. So if I get it for 10 months, that will be another 5 mt, so we should end up with anything between 37 mt and 38 mt.”
Last year, NMDC had suspended iron ore-mining at the Donimalai mine in Karnataka following the state government's decision to impose 80 percent premium on the iron ore sales from the mine.
In terms of exports, Mukherjee said, “Our quota for an annual export is around 3 mt. So we do something between 2.7 mt and 3 mt depending on what is the requirement of the Japanese steel mills and Posco is. We only export to Korea and Japan and that too under an intergovernmental agreement. This export is on a concessional export duty of 10 percent. It is not on the normal export duty of 30 percent. In Q4, we did 5 percent lower than last year and lower than Q3.”