National Mineral Development Corporation Ltd (NMDC), India’s largest iron ore producer, reported a 62.6 percent increase in consolidated net profit for the December quarter as compared to the same quarter last year, aided by healthy domestic demand for steel.
Earnings climbed to Rs 1,469.73 crore in the three-month period ended December 31 from Rs 903.89 crore in the year-ago period, the state-owned company said on February 14. Sequentially, NMDC’s net profit increased 43 percent from Rs 1,024.86 crore in the previous quarter.
On a standalone basis, net profit rose 67.7 percent Y0Y to Rs 1,492.3 crore.
The company’s consolidated revenue from operations rose 45 percent YoY to Rs 5409.90 crore. On a QoQ basis, revenue surged 34.7 percent.
Meanwhile, NMDC's board declared interim dividend of Rs 5.75 per equity share of face value of Re.1/- each for the financial year 2023-24. Record date for the payment of dividend is set on February 27.
The results come amid robust demand for iron ore, a key steel making ingredient, as government continues its infra spending spree. Earlier in the month, the finance ministry raised infrastructure spending by 11 percent in the interim budget. The move is expected to translate into robust domestic steel demand, helping country's largest iron ore producer.
NMDC operates four iron ore mines in Chhattisgarh and Karnataka states. Iron ore sales in the quarter jumped 19 percent Y-O-Y to Rs 113.9 crore, the company said in an investor presentation.
The company is also benefitting from price realizations. Last month, the mining major raised iron ore prices by Rs 400 per tonne amid soaring demand for the raw material.
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