NMDC misses profit expectations

Profit growth may seem muted, but it was ahead of estimates if one-off transactions are excluded

Aided by strong volume growth and realisations, NMDC posted a strong operating performance for the December quarter. However, profits were weighed down by one-offs and thus missed expectations and disappointed investors. The stock lost about five per cent on Tuesday to close at Rs 138.40.

Rising iron ore prices and improved ore demand has helped NMDC’s performance rebound sharply over the past few quarters. During the December quarter, too, while NMDC saw its production rise 28 per cent year-on-year (y-o-y) to 9.71 million tonne (mt), sales grew 25 per cent to 10.06 mt. It is not only domestic demand, but rising