NMDC drops on weak production, sales numbers in April

State-run NMDC skid 7.58% to Rs 74.40 after the iron-ore producing major declared that its annual provisional production tumbled 37.93% to 1.80 million tonnes (MT) in April 2020 over 2.90 MT in April 2019.

Provisional iron-ore sales slumped 48.88% to 1.38 million tonnes (MT) in April 2020 as against 2.70 MT in April 2019.

On a month-on-month (M-o-M) basis, the provisional iron-ore production dropped 34.78% in April 2020 as compared to 2.76 MT in March 2020. The provisional iron-ore sales also witnessed a 48.88% decline in April 2020 from 2.70 MT in March 2020.

The announcement was made on Friday, 1 May 2020. The BSE and NSE were shut on Friday on account of Maharashtra Day.

NMDC's consolidated net profit fell 11.17% to Rs 1,394.40 crore on a 17.62% slip in net sales to Rs 3,006.38 crore in Q3 December 2019 over Q3 December 2018.

NMDC is India's single largest iron ore producer, presently producing about 35 million tonnes of iron ore from 3 fully mechanized mines, two located in Chhattisgarh and one in Karnataka.

As of 31 March 2020, the Government of India holds 69.646% stake in the mining company.

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