Consolidated net profit of India’s largest iron-ore producer NMDC Ltd. surged to ₹2,326.14 crore for the quarter ended September, from the ₹752.37 crore of the year earlier period, on the back of higher demand for iron and steel.
A manifold increase, it came as total income rose sharply to ₹6,882.44 crore (₹2,318.67 crore). “Demand for iron and steel has witnessed a boom in emerging markets. As a key player, we responded with proactive production-enhancement initiatives and are now reaping benefits of agile response to the demand with an exceptional quarter,” CMD Sumit Deb said.
Capacity expansion initiatives and enforcement of digital infrastructure are two focus areas for the company, he said in a release on Thursday. Production at 8.77 million tonnes (MT) during the quarter was 56% higher compared with 5.64 MT in the corresponding period of previous fiscal. Sales increased 36% to 8.99 MT (6.60 MT). For the six months ended September, iron ore production of the public sector mining major stood at 17.68 MT (12.24 MT), while sales totalled 18.43 MT (12.88 MT).
On a standalone basis, NMDC reported a net profit of ₹2,340.92 crore (₹773.66 crore). Total income was ₹6,882.33 crore (₹2,318.25 crore).
A sharp increase in royalty and other levies to ₹2,760.81 crore (₹380.12 crore), owing to an amendment in the MMDR Act 1957 in March this year, pushed up the expenses. Total expenses of the company for the quarter increased to ₹3,740.24 crore (₹1,254.85 crore).
In notes accompanying the results, NMDC said as per the amended provisions government entities whose mining lease has been extended after commencement of the MMDR Amendment Act 2015 need to pay additional amount, specified in the Fifth Schedule of the Act, for mineral produced after commencement of the MMDR Amendment Act, 2021. For such mining leases of iron ore, an additional amount equivalent to 150% of the royalty has to be paid. It 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 amendment on all iron ore mines of NMDC except Kumaraswamy Mines in Karnataka is ₹2,392.93 crore for the current period, the company said.
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