India's NMDC posts Q1 profit rise on strong iron ore sales

Jindal Stainless

11/08/2023 13:25

BENGALURU, Aug 11 (Reuters) - India's National Mineral
Development Corp (NMDC)  NMDC.NS  on Friday reported a rise in
quarterly profit, aided by robust iron ore sales. 
    The company posted a profit of 16.50 billion rupees for the
first quarter ended June 30, up 12% from a year ago.
    Increased economic activity and higher infrastructure
spending in India have boosted steel and cement consumption
ahead of state-level and national elections due next year,
analysts said.
    NMDC's revenue from operations rose 13.2%, to 53.95 billion
rupees, while raw material costs fell 82.6% due to lower coal
and coke prices. 
    Demand and prices for iron ore rose globally this year as
production dropped 10% from January to May in China, forcing the
world's largest consumer to import more iron ore, driving up
prices worldwide. 
    Meanwhile, robust domestic demand for steel, which requires
iron ore for its production, also helped boost sales of the
mineral.
    Last month, state-owned NMDC said it sold a total of 11.15
million tonnes of iron ore in the quarter, its highest ever. 
    Steel manufacturers such as Jindal Stainless  JIST.NS  and
JSW Steel  JSTL.NS  reported handsome profits last month on the
back of domestic demand.
    Shares of NMDC settled flat ahead of the results. The stock
fell 6.2% during the April-June quarter.

 (Reporting by Biplob Kumar Das in Bengaluru; Editing by Pooja
Desai)
 ((Biplobkumar.das@thomsonreuters.com; 9101861583;))