NMDC jumps over 4% post-Q1 results; net profit grows 13% to Rs 1,661 crore

NMDC share price: Shares of state-run NMDC ended over 4 per cent higher at Rs 118.55 apiece on the BSE on Monday. The company on Friday posted a 13 per cent rise in its consolidated net profit at Rs 1,661.04 crore for the April-June quarter, boosted by higher income.

It had clocked a net profit of Rs 1,471.24 crore in the April-June period of the 2022–23 fiscal, the company said in a regulatory filing.

The company's total income surged to Rs 5,688.87 crore from Rs 4,913.06 crore logged in the year-ago quarter.

Total expenses also grew to Rs 3,476.55 crore as compared to Rs 2,968.94 crore a year ago.

In July, the company reported its best-ever sales and production figures for the first quarter of FY24 ending June 30, 2023.

The company posted production of 3.48 million tonnes (MnT) and sales of 4.1 MnT of iron ore in June, which are the highest figures for the June quarter in NMDC's history. Production for April, May, and June also reached record highs.

Significant Growth in Production and Sales

NMDC experienced a robust 35 per cent increase in production and a staggering 115 per cent increase in sales compared to the previous month. In Q1 of FY24, the company's cumulative production and sales grew by 20 per cent to 10.7 MnT and 45 per cent to 11.15 MnT, respectively. This exceptional performance can be seen as a direct result of NMDC's strategic investments in mine planning, expansion, and efficient human asset management over the previous fiscal year.

About NMDC 

The National Mineral Development Corporation (NMDC) is a Navratna public sector enterprise under the Ministry of Steel, Government of India, and is the single largest producer of iron ore in India. It was incorporated in 1958 as a Government of India public enterprise. The corporation is under the administrative control of the Ministry of Steel and has been involved in the exploration of a wide range of minerals, including copper, rock phosphate, limestone, magnesite, diamond, tungsten, and beach sands, among others, in some of the most remote corners of the country.