NMDC Q1 results: Net profit up 20% at Rs 1,984 cr on higher prices

India's state-run miner NMDC reported a first-quarter profit ahead of estimates on Monday as higher prices offset a decline in sales primarily caused by workers' strikes.

Profit for the country's largest state-owned iron ore miner swelled 20% from a year earlier to Rs 1,984 crore (about $236 million) for the three months ended June 30.

Analysts had estimated a profit of Rs 1,635 crore, per LSEG data.

NMDC imposed price hikes of iron ore in the quarter, analysts said, which hit bottomlines of steelmakers including JSW Steel and Jindal Steel. Iron ore is a key steelmaking raw material.

NMDC's sales, however, fell significantly in two of the three months of the quarter, while production dipped in all three months, according to its monthly updates.

Iron ore production and sales volumes were affected by employee strikes, analysts at brokerage Prabhudas Lilladher said.

The miner has been facing significant disruptions in its production and dispatches due to an ongoing workers' strike which erupted in May, BigMint, a commodities consultancy firm said in May.

NMDC's revenue from operations fell marginally to Rs 5,378 crore. Analysts had predicted a revenue of Rs 5,446 crore.