NMDC climbs 3.5% as iron ore production increases

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NEW DELHI: NMDC shares rose 3.5% in early trading Thursday as investors cheered a robust increase in iron ore output in April-February.

The state-owned miner recorded a 26% increase in its iron ore production to 37.18 million tonnes (MT) during the April-February 2021-22 period. In the prior year period, the company produced 29.52 MT of iron ore, the Steel Ministry said.

The meter climbed to a high of Rs 156.40 from Rs 151.10 at the previous close on the National Stock Exchange.

In February 2022, the company saw its production increase by 11.7% to 4.31 MT from 3.86 MT in the same month last year, PTI reported.

According to the ministry, NMDC’s sales over the 11-month period also increased by 25.5% to 36.57 MT from 29.15 MT a year ago.

In February, the state-owned company’s sales jumped 22.2% to 3.97 MT from 3.25 MT in February 2021.

“With an overwhelming performance this month, NMDC remains a steel powerhouse and this success is attributed to all stakeholders in the business. This strong performance confirms our commitment to stay on the growth path,” NMDC told CMD Sumit Deb. in the PTI report.

The NMDC, which falls under the Ministry of Steel, is the largest iron ore producer in the country.

In the third quarter of the current financial year, NMDC reported a marginal decline of 2.8% in consolidated profit to Rs 2,048.40 crore due to higher expenses, PTI reported.

The company had reported a profit of Rs 2,108.05 crore for the period a year ago.

However, the company’s revenue in the quarter increased to Rs 6,026.68 crore from Rs 4,460.97 crore a year ago.

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