NMDC turns volatile after reducing iron ore prices

NMDC shed 0.4% to Rs 86.25 at 14:15 IST on BSE after the company announced reduction in iron ore prices with effect from today, 2 June 2016.

The announcement was made during market hours today, 2 June 2016.

Meanwhile, the BSE Sensex was up 15.50 points, or 0.06%, to 26,729.43

On BSE, so far 2.14 lakh shares were traded in the counter, compared with an average volume of 2.87 lakh shares in the past one quarter. The stock was volatile. The stock rose as much as 2.19% at the day's high of Rs 88.50 so far during the day. The stock fell as much as 1.5% at the day's low of Rs 85.30 so far during the day. The stock hit a 52-week high of Rs 128.95 on 2 June 2015. The stock hit a 52-week low of Rs 75.20 on 12 February 2016. The stock had underperformed the market over the past one month till 1 June 2016, falling 9.41% compared with 4.32% gains in the Sensex. The scrip had also underperformed the market in past one quarter, rising 5.1% as against Sensex's 12.34% gains.

The large-cap state-run iron ore miner has an equity capital of Rs 396.47 crore. Face value per share is Re 1.

NMDC has reduced the lump ore price by 10% to Rs 1,800 per tonne. The state-run firm also reduced prices for iron ore fines by 12.04% to Rs 1,460 per tonne.

NMDC's net profit fell 59% to Rs 552.93 crore on 45.9% decline in net sales to Rs 1529.94 crore in Q4 March 2016 over Q4 March 2015.

The Government of India (GoI) holds 80% stake in NMDC (as per the shareholding pattern as on 31 March 2016). NMDC is India's single largest iron ore producer, presently producing about 30 million tonnes of iron ore from 3 fully mechanized mines.

Powered by Capital Market - Live News