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NMDC spurts on hiking iron ore prices for second time in Nov

Capital Market 

NMDC jumped 3.03% to Rs 96.85 after the state-owned iron ore miner hiked prices of iron ore (lump ore and fines) with effect from Tuesday, 17 November 2020.

NMDC increased lump ore prices by 11.11% to Rs 4,000 per tonne from Rs 3,600 per tonne set on 4 November 2020. Prices of fines were hiked by 9% to Rs 3,610 per tonne from Rs 3,310 per tonne set on 4 November 2020. The new rates come into effect from 17 November 2020.

Earlier on 4 November, NMDC increased lump ore prices by 4.35% and fines by 4.75%.

The state-owned firm on 10 November 2020 said its board has approved a share buyback proposal of up to Rs 1,378 crore. The board approved a proposal for buyback of upto 13,12,43,809 fully paid-up equity shares of a face value of Re 1 each from the company's shareholders at a price of Rs 105 per equity share payable in cash. The buyback will be for an aggregate consideration not exceeding Rs 13,78,05,99,945, representing 5% and 5.05% of the total fully paid-up equity share capital and free reserves, respectively. NMDC has fixed 23 November 2020 as a record date for the buyback.

Meanwhile, NMDC also announced Q2 September 2020 results on 10 November. On a standalone basis, the state-run miner's net profit rose 10% to to Rs 773.66 crore on 0.5% decline in net sales to Rs 2,229.89 crore in Q2 September 2020 over Q2 September 2019.

EBITDA dropped 5.89% to Rs 1,118 crore in Q2 September 2020 from Rs 1,188 crore in Q2 September 2019. EBITDA margin contracted to 50% in Q2 September 2020 from 53% in Q2 September 2019.

Shares of NMDC have surged nearly 7% in last four trading days from its previous closing low of Rs 90.7 on 11 November 2020. The counter has gained almost 17% in last one month as against 19% rise in Nifty Metal index.

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 on 30 October 2020, Government of India held 69.65% stake in the company.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, November 17 2020. 11:26 IST