A huge loss declared in first quarter of NMDC Financial result, goes down 55%

New Delhi: National Mineral Development Corporation Limited (NMDC) reported very negative Financial performance in June 2022. During the first quarter of FY22, the turnover of the company was Rs. 6,512 crore while Profit Before Tax and Profit After Tax figures stood at Rs. 4,263 crore and Rs. 3,193 crore respectively.

The early monsoon hits NMDC's production and sales very hard that the company registers a loss at the start of financial year.  

Current financials for Q1 of FY23 of NMDC strike downwards with a turnover of Rs. 4,767 crore, Profit Before Tax of Rs. 1,946 crore, and Profit After Tax of Rs.1,469 crore. 

According to the BSE filing, it is mentioned, a number of Rs. 54.17 crore is provided towards Expected Credit Loss (ECL) during the quarter ended 30th June 2022.

However, the company produced 8.92 Million Tonnes and sold 7.80 Million Tonnes iron ore in the first quarter of FY23. Sales in the corresponding period last year stand slightly high at 9.45 Million Tonnes. BSE highlighted the company score that fell to -25 from -7 in the last 3 months. Moreover, the company faces a drastic fall in share price in the past 6 months, in April 2022 the company's share price stands 166. 55 INR which now strikes down to 112 INR.

Also, the major reason behind the share fall can be predicted by the demerger of three million tonnes integrated steel plant at Nagarnar near Bastar in Chattishgarh which can be completed by September 2022 or the second quarter, however, the comments on this are awaited.