NMDC gains on 34% rise in net profit

Stock up 4% at Rs 177

NMDC surged nearly 4% to Rs 177 after the state-owned iron ore miner NMDC had reported a 34% rise in net profit at Rs 1,962 crore for the quarter ended March 2014, compared with a profit after tax of Rs 1,465 crore in the same quarter previous year. The company's turnover during the period increased by 21% to Rs 3,884 crore from Rs 3,204 crore.

In the year 2013-14, the company's turnover and net profit stood at Rs 12,058 crore and Rs 6,420 crore. The production and sales of iron was 30.02 million tonnes (Mt) and 30.50 (Mt) respectively. It had target to produce and sell 31 Mt and 32 Mt this year.

NMDC chairman and managing director, Narendra Kothari, said the company had incurred a capital expenditure of Rs 2,518 crore last year and planned to spend Rs 3,495 crore in the current year. The bulk of this amount would be on the execution of the Rs 15,000- crore Nagarnar steel plant.

The stock opened at Rs 173.25 and has surged to a high of Rs 181 thus far.

A total of over 1.2 million shares changed hands on the BSE and NSE till 1000 hrs.