NMDC slips after cutting iron ore prices

Shares of NMDC declined 1.65% to Rs 74.55 after the company cut prices of iron ore with effect from 14 March 2020.

NMDC on Monday (16 March 2020) reported that prices of lump ore (65.53, 6-40mm) have been reduced by Rs 50 or 1.56% to Rs 3150 per ton from Rs 3,200 set in January 2020. The company also reduced prices of fines (643,-10mm) by Rs 50 or 1.72% to Rs 2860 per ton from Rs 2,910 set in January 2020.

On a sequential basis, NMDC reported 2.11% fall in iron ore production from 3.31 million tonne reported in January 2020. On a sequential basis, total sales declined 1.69% in February 2020 as against January 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.

On a consolidated basis, NMDC's net profit declined 11.2% to Rs 1394.40 crore in Q3 December 2019 (Q3 FY20) as against Rs 1569.77 crore reported in Q3 December 2018 (Q3 FY19). Net sales fell 17.6% year-on-year (YoY) to Rs 3006.38 crore in Q3 December 2019.

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