NMDC gains 3% as Q1 profit beats estimates

Net profit was up 22% at Rs 1,915 crore in the June quarter driven by volume growth

Shares of NMDC were up nearly 3% at Rs 178 after the state-owned company reported better-than-expected earnings for the first quarter ended June 30, 2014 driven by volumes.

Net profit for the quarter stood at Rs 1,915 crore up 22% compared to the same quarter last fiscal and beating analysts estimate of Rs 1,817 crore.

Sale of iron ore during the quarter was up 18% at 85.90 lakh tonne compared with 72.52 lakh tonne

Net sales at Rs 3,475 crore up 21 per cent year-on-year were also ahead of consensus analysts’ estimates of Rs 3,451 crore as per Bloomberg.

The stock opened at Rs 176 and touched a high of Rs 179 on the BSE so far. Over 1.2 million shares were traded on the BSE and NSE so far.