Q1 Results: NMDC Profit Jumps On Higher Sales, Production
Restarting Donimalai mine will require obtaining clearances and signing agreements, says NMDC.
NMDC Ltd.’s profit for the quarter ended June jumped on account of higher production and sales.
Net profit rose 21 percent to Rs 1,178.01 crore in the April-June period, the state-owned miner said in its exchange filing.
According to Amitava Mukherjee, director finance at NMDC, the upstream in income is because of higher production and sales. “Our production has gone up by 21 percent and sales has shot up by 28 percent to 86.7 lakh tonnes,” he told BloombergQuint. “These are unprecedented numbers.”
The Karnataka High Court ruled favourably on the Donimalai mining issue, where the state government was asking for a higher royalty to renew the lease, according to a note by JP Morgan.
Restarting NMDC’s Donimalai mine will require obtaining clearances and signing agreements, Mukherjee said. “It’s difficult to put a timeline to it since a multiplicity of approvals are needed, but the process is underway.”
Watch the full interview here: