The shares of NMDC Limited, India’s largest iron ore producer, opened their trading hour at Rs 106 and currently trade at Rs 107.50, surging around 3 percent compared to the previous closing levels of Rs 104.65. It has a market capitalization of Rs 31,400 crores.
One of the probable reasons for the company’s stock to move up is pertaining to the recent filing published with the Bombay Stock Exchange (BSE) dated 1st July 2023.
The filing provided business updates wherein the company recorded the highest-ever production of 3.48 Million Tonnes and sales of 4.10 Million Tonnes in the month of June 2023. Moreover, the company also noted the best performance for Q1FY23-24 with production being 10.70 Million Tonnes and sales being 11.15 Million Tonnes.
“NMDC’s contribution to the country’s economy continues to make massive headway in meeting the increase in the demand for iron ore. Our record of highest ever Q1 and June production and sales since inception resonates with our agile and diligent investments in mine planning, expansion and very efficient human assets.” commented Mr. Amitava Mukherjee, CMD of NMDC.
The consolidated financials of the company, in the last couple of quarters, portray an increase as far as the operating revenues and net profits are concerned.
The operating profits moved up from Rs 3,719 crores during Q3FY22-23 to Rs 5,851 crores in Q4FY22-23, and, net profits saw a movement from Rs 903 crores to Rs 2,276 crores during the same period which represents a drastic increase of 152 percent.
NMDC Limited is involved in the business of mining a wide range of minerals some of which include iron ore, magnesite, graphite, etc. ‘Iron ore’ accounts for a majority of the revenue generated by the company. Seeing the geographic mix, the majority of its revenue comes from the domestic Indian market.
Written by Amit Madnani
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