NMDC Q2 net profit jumps 15% to Rs 1,024.86 crore

NMDC profit rose 15 percent in Q2

National Mineral Development Corporation Ltd. (NMDC), India’s largest iron ore producer, reported a 15.7 percent increase in consolidated net profit in the second quarter on the back of healthy demand.

Earnings climbed to Rs 1,024.86 crore in the three months ended September from Rs 885.65 crore a year earlier, the state-owned company said in a statement on November 14. Sequentially, NMDC’s net profit declined 38 percent from Rs 1,661.04 crore in the first quarter.

The company’s revenue from operations rose by 20 percent to Rs 4,013.98 crore in the September quarter from Rs 3,328.5 crore a year earlier.

On a standalone basis, net profit rose 15.6% to Rs 1,027.63 crore.

The results came as domestic steelmakers, which use iron ore as a key raw material, remain optimistic about demand as the government accelerates infrastructure spending ahead of the general elections in 2024.

"Robust iron ore sales volume and the recent recovery in iron ore prices reinforce our confidence with respect to strong earnings performance by NMDC," brokerage Sharekhan said in a note dated September 29.

NMDC operates four iron ore mines in Chhattisgarh and Karnataka states.