NMDC reported a marginal dip in iron ore sales by 3pc in the fiscal year 2019-20 to 31.51mn mt from the prior year, with production also dip by 3pc to 31.48mn mt in the same period.

 

The COVID-19 pandemic and nationwide lockdown imposed in March impacted NMDC’s iron ore production and sales volumes. NMDC incurred 1mn mt loss in production and 0.55mn mt loss in sales in FY2020. It also resulted in a loss of sales revenue of around Rs291 crore and profit before tax of Rs120 crore.

 

Almost of secondary producers across India have shut their units and primary producers were operating at around 50pc capacity utilization level during the lockdown. After lockdown restrictions were eased, most steel producers resumed production and gradually ramp-up their production during May and June.

 

NDMC’s sales dropped by 15pc to 8.6mn mt in Q4 FY2020 from the prior year and production fell by 11pc to 9.47mn mt. The company’s profit after tax fell by 22pc to Rs3,610 crore and revenue by 4pc to 11,699 crore in FY2020 from the prior year.

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