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India's National Mineral Development Corp (NMDC) on Tuesday reported a rise of over 15% in quarterly profit, aided by strong iron ore sales.
The State-owned miner's profit rose to Rs 1,028 crore ($123.76 million) in the second quarter ended Sept. 30, from Rs 889 crore a year earlier.
The company witnessed a nearly 21% growth in revenue generated from its iron ore segment from the previous year.
Domestic steel demand is likely to benefit from a surge in infrastructure projects after the monsoon season, analysts have said. A strong recovery in the automotive and white goods sectors, propelled by the ongoing festive season, is also expected to contribute to the positive trend.
India maintained robust steel production and demand during the typically slow quarter. In contrast, in the world's largest steel producer China, demand from the property sector was weak, dampening expectations of a quicker economic recovery for the country.
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Meanwhile, robust domestic demand for steel, which requires iron ore for its production, also helped boost sales of the mineral.
NMDC saw a rise in production and sales of iron ore in the second quarter. Its revenue from operations in the same period rose 20.6%, to 40.14 billion rupees.
Peer Jindal Stainless reported a doubled profit last month from a year ago, on the back of robust domestic demand.
NMDC's shares have gained nearly 42.4% so far this year, while those of Jindal Stainless have risen 103.8%.
