NMDC rises after decent production, sales in August

NMDC gained 1.9% to Rs 85.10 after the state-owned miner said its iron ore production rose 15% to 1.62 million tonnes (MT) in August 2020 from 1.41 MT in August 2019.

The company's iron ore sales climbed 20% to 1.79 MT in August 2020 as against 1.49 MT in August 2019. The announcement was made after market hours yesterday, 1 September 2020.

On a month-on-month basis, NMDC's production declined 26% and sales fell 30% in August 2020 over July 2020.

NMDC reported 54.67% slide in net profit to Rs 531.01 crore on 40.67% fall in total income to Rs 2,009.27 crore in Q1 June 2020 over Q1 June 2019. EBITDA dropped 58% to Rs 826 crore in Q1 June 2020 from Rs 1,989 crore in Q1 June 2019. EBITDA margin contracted to 43% in Q1 June 2020 from 61% in Q1 June 2019.

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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