Net profit declines on higher revenue
Public sector mining major NMDC has posted a consolidated net profit of ₹2,048.4 crore for the quarter ended December from ₹2,108.05 crore in the year earlier. Revenue from operations increased almost 35% to ₹5,873.77 crore (₹4,355.10 crore).
The increase in total income was also nearly similar to ₹6,026.68 crore (₹4,460.97 crore). NMDC has declared an interim dividend of ₹5.73 per equity share of face value of ₹1 each. With the first interim dividend of ₹9.01 per share, the total dividend, thus far this fiscal, will be ₹14.74.
This is the highest dividend declared in its history, NMDC said. The total cash outgo on account of dividend is ₹4,320 crore.
Describing it as a strong performance achieved on the back of enhanced production under challenging times, CMD Sumit Deb said the company was on course to reach the production target this fiscal. “We continue to be committed to completing important capex projects and the digitalisation and automation of our operations,” he said.
NMDC said in a release that the company registered a 125% increase in revenue from operations to ₹19,179 crore (₹8,522 crore) for the first nine months of the fiscal. Net profit for the nine months also surged to ₹7,578.33 crore (₹3,411.93 crore).
Weighing on the financial performance for the quarter was the higher Royalty and other levies totalling ₹2,508.91 crore (₹622.2 crore). In the notes accompanying the results, NMDC said following amendments in March 2021 to MMDR Act, 1957, there has been an increase in royalty payable on certain mining leases of iron ore. The additional amount has to be paid in addition to royalty or payment to the District Mineral Foundation and National Mineral Exploration Trust or any other statutory payment.
The impact of this amendment on all the iron ore mines of NMDC except Kumaraswamy Mines at Karnataka is ₹3,700 crore for the current period and is included under royalty and other levies, the company said.
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