NMDC in demand after strong offtake, hike in prices

The state-owned miner said its iron ore production rose 12.89% to 2.19 million tonnes (MT) in July 2020 from 1.94 MT produced in July 2019.

Iron ore sales climbed 6.6% to 2.57 MT in July 2020 as against 2.41 MT in July 2019. The announcement was made during market hours today, 3 August 2020.

Sequentially, production declined 13.1% in July 2020 from 2.52 MT in June 2020. Sales rose 3.63% during the month from 2.48 MT in June 2020.

Further, NMDC revised prices of iron ore with effect from 31 July 2020. The company hiked prices of lump ore by Rs 200 or 8.16% to Rs 2,650 per ton. Prices of fines were hiked by Rs 200 or 9.26% to Rs 2,360 per ton.

On a consolidated basis, NMDC's net profit slumped 76.1% to Rs 347 crore on 12.5% fall in net sales to Rs 3,187.34 crore in Q4 March 2020 over Q4 March 2019.

Shares of NMDC were trading 1.6% higher at Rs 85.10 on BSE. The stock traded in the range of Rs 83.75 to Rs 85.40 so far.

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 30 June 2020, the Government of India holds 69.65% stake in the mining company.

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