NMDC shrugs off weak Q1 results

NMDC surged 8.91% to Rs 103.30 at 14:47 IST on BSE after net profit fell 17.51% to Rs 1572.19 crore on 0.02% decline in total income to Rs 3391.53 crore in Q1 June 2013 over Q1 June 2012.

The Q1 result was announced during trading hours today, 7 August 2013.

Meanwhile, the S&P BSE Sensex was up 61.50 points or 0.33% at 18,794.54.

On BSE, 4.7 lakh shares were traded in the counter as against average daily volume of 1.54 lakh shares in the past one quarter.

The stock hit a high of Rs 103.50 and a low of Rs 92.90 so far during the day. The stock had hit a 52-week low of Rs 92.65 on Tuesday, 6 August 2013. The stock had hit a 52-week high of Rs 200.90 on 29 August 2012.

The stock underperformed the market over the past one month till 6 August 2013, sliding 8.71% compared with the Sensex's 3.91% fall. The scrip had also underperformed the market in past one quarter, declining 26.98% as against Sensex's 4.78% fall.

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

NMDC's selling expenses including freight jumped 706.28% to Rs 291.07 crore in Q1 June 2013 over Q1 June 2012. During Q1 June 2013, the company exported 4.92 lakh tons (against nil in Q1 June 2012) due to which the selling expenditure on exports has gone up by Rs 255 crore. Further, on account of the Supreme Court judgment dated 18 April 2013 on illegal mining cases at Karnataka, 10% of sale proceeds of Donimalai sector amounting to Rs 66 crore (previous corresponding period nil) has been accounted in other expenses in the current quarter, towards contribution of Special Purpose Vehicle to be formed in Karnataka.

NMDC's total outgo under the head 'other expenses' spurted 124.52% to Rs 212.49 crore in Q1 June 2013 over Q1 June 2012.

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 30 June 2013).

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