India’s largest iron-ore producer NMDC Ltd.’s consolidated net profit rose to ₹2,326.14 crore for the quarter ended September, from ₹752.37 crore in the year-ago period, on account of higher iron and steel demand.
A manifold increase, it sharply increased the total income to ₹6,882.44 crore (₹2,318.67 crore). “Emerging markets have witnessed an uptick in demand for iron and steel. As a key player, we responded with proactive production-growth initiatives and are now leveraging agile response to demand with an exceptional quarter,” said CMD Sumit Deb.
Capacity expansion initiatives and implementing digital infrastructure are the two focus areas for the company, he said in a release on Thursday. The 8.77 million tonnes (MT) production during the quarter was 56% higher as compared to 5.64 MT in the corresponding period of last fiscal. Sales rose 36% to 8.99 metric tons (6.60 metric tons). For the six months ended September, the public sector mining company’s iron ore production stood at 17.68 MT (12.24 MT), while sales totaled 18.43 MT (12.88 MT).
On a standalone basis, NMDC reported a net profit of ₹2,340.92 crore (₹773.66 crore). The total income was ₹6,882.33 crore (₹2,318.25 crore).
A sharp increase of ₹2,760.81 crore (₹380.12 crore) in royalty and other levies due to amendments to the MMDR Act 1957 in March this year pushed up the expenses. The company’s total expenses for the quarter increased to ₹3,740.24 crore (₹1,254.85 crore).
In concordance with the results, NMDC stated that as per the amended provisions, the Government entities whose mining lease has been extended after the enactment of the MMDR Amendment Act 2015, are required to pay the additional amount specified in the Fifth Schedule of the Act. MMDR Amendment Act, 2021. For such mining leases of iron ore, an additional amount equal to 150% of the royalty will have to be paid. This is in addition to royalty or payment to the District Mineral Foundation and National Mineral Exploration Trust or any other statutory payment. The impact of the revision on all iron ore mines of NMDC except the Kumaraswamy mines in Karnataka is Rs 2,392.93 crore for the current period, the company said.
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