NMDC gains nearly 3% after best ever performance in June quarter

Shares of State-owned iron ore producer, NMDC Ltd surged nearly 3 per cent in intraday trade on Monday, after the company reported its best ever sales and production figures for the first quarter of FY24 ended June 30, 2023.   

The company posted a 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 previous fiscals.

Positive Impact on Stock Price

The strong performance update led to a surge in NMDC's stock price. Shares of the PSU reached a day high of Rs 107.55 on the NSE on Monday. Shares of the company were trading at Rs 107.55 apice on NSE at 2:16 PM, up 2.77 per cent. 

Solid Financials and Future Outlook

In recent quarters, NMDC's consolidated financials have shown an increase in operating revenues and net profits. Revenue, profit, and operating profits have all seen a quarter over quarter increase in the last quarter of FY23. The company's CMD, Amitava Mukherjee, underscored NMDC's significant contributions to the country's economy and its efficient investments in mine planning and expansion.

NMDC is expected to release its Q 2024 earnings on August 9, 2023, an event that will be closely watched by investors and analysts for an insight into the company's ongoing performance and growth.