NMDC gains after good Q3 outcome

NMDC rose 1.1% to Rs 145.90 at 09:22 IST on BSE after net profit rose 21.2% to Rs 1567.30 crore on 37.8% rise in net sales to Rs 2821.53 crore in Q3 December 2013 over Q3 December 2012.

The result was announced after market hours on Monday, 10 February 2014.

Meanwhile, the BSE Sensex was up 37.22 points, or 0.18%, to 20,371.49

On BSE, so far 85,287 shares were traded in the counter compared with average volume of 2 lakh shares in the past one quarter.

The stock hit a high of Rs 146.50 and a low of Rs 144.20 so far during the day. The stock hit a 52-week high of Rs 154.40 on 20 February 2013. The stock hit a 52-week low of Rs 92.65 on 6 August 2013.

The large-cap company has an equity capital of Rs 396.47 crore. Face value per share is Re 1.

The NMDC board at its meeting on Monday, 10 February 2014 recommended second interim dividend of 550% in addition to the first interim dividend of 300% for the year ending 31 March 2014. The total interim dividend so far is 850% for the year ending 31 March 2014.

NMDC's production of iron ore rose 36% to 7.30 million tonnes (MT) in Q3 December 2013 over Q3 December 2012. Sales of iron ore rose about 38% to 7.34 MT in Q3 December 2013 over Q3 December 2012.

For the year 2013-14, capital expenditure of Rs 2720 crore is planned to be incurred including Rs 100 crore for overseas acquisitions. So far, from April-December 2013, the capital expenditure of Rs 1679 crore has been incurred, which is 65% more than corresponding period last year. The installation of 3 MTPA steel plant at Nagarnar in Chhattisgarh, as part of NMDC's forward integration programme and value addition, is being pursued vigorously. Orders for major technological packages have already been placed, other auxiliary packages are in advanced stages of finalization and construction works of the major packages are being undertaken on war footing.

As part of its expansion programme, NMDC is developing two new mines, one in Bailadila Sector in Chhattisgarh i.e. Deposit-11B Iron Ore Project and the other in Bellary-Hospet region in Karnataka i.e. Kumaraswamy Iron Ore Mine. Besides, orders have already been placed for setting up of 1.2 MTPA capacity Pelletisation plant in Karnataka.

Speaking on the occasion, Shri C.S. Verma, CMD said NMDC is in its stride to reach production of iron ore of 30 MT for the year 2013-14 which would be a record in itself for NMDC in spite of evacuation hurdles. It is evident from these results that NMDC would definitely be in the forefront in the years ahead and move towards ensuring sustainable growth

NMDC said on Saturday, 8 February 2014 that on a provisional basis, the company's iron ore production rose 12.16% to 23.23 million tonne in the ten months ended 31 January 2014 over the ten months ended 31 January 2013. Iron ore despatches on a provisional basis rose 15.45% to 24.28 million tonne in the ten months ended 31 January 2014 over the ten months ended 31 January 2013.

The company also said that it has rolled over the January 2014 prices of lump ore of Rs 4500 per WMT to the month of February 2014. It increased the prices of iron ore fines by Rs 100 per WMT to Rs 2910 per WMT for the month of February 2014.

State-run NMDC is India's single largest iron ore producer and exporter. The Government of India (GoI) holds 80% stake in NMDC (as per the shareholding pattern as on 31 December 2013).

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