NMDC shines after strong production, offtake in Sept

NMDC gained 1.39% to Rs 83.475 after the state-owned miner said its iron ore production rose 11.6% to 1.83 million tonnes (MT) in September 2020 from 1.64 MT in September 2019.

The company's iron ore sales climbed 10.47% to 2.11 MT in September 2020 as against 1.91 MT in September 2019.

On a month-on-month basis, NMDC's production increased nearly 13% and sales surged almost 18% in September 2020 over August 2020.

NMDC reported 54.67% slide in net profit to Rs 531.01 crore on 40.67% fall in total income to Rs 2,009.27 crore in Q1 June 2020 over Q1 June 2019. Consolidated EBITDA dropped 58% to Rs 826 crore in Q1 June 2020 from Rs 1,989 crore in Q1 June 2019. EBITDA margin contracted to 43% in Q1 June 2020 from 61% in Q1 June 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.

As of 30 June 2020, the Government of India holds 69.65% stake in the mining company.

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