NMDC share price in focus: Continuing their bearish trend for the second consecutive trading session, shares of NMDC, India’s largest iron ore producer, fell another 3% in intraday trade on Wednesday, May 28, to ₹70.65 apiece, as investor sentiment turned negative following the release of the company’s March quarter results.
The company, post market hours on Tuesday, reported a 5% rise in consolidated net profit to ₹1,483 crore for the March quarter, driven by higher iron ore and pellet sales revenue. In the same period of the previous fiscal year, the company had posted a net profit of ₹1,415 crore.
NMDC’s total income rose by around 9 per cent to ₹7,497.17 crore in the last quarter of FY25 from ₹6,908.37 crore in Q4 FY24. Iron ore sales were 6,350.49 crore while pellet along with other minerals contributed ₹662.07 crore.
For the full FY25 fiscal, the net profit increased by over 17 per cent to ₹6,538.82 crore from ₹5,571.25 crore in FY24. Total income rose to ₹25,498.84 crore from ₹22,678.73 crore in the corresponding fiscal.
NMDC’s iron ore prices averaged at ₹4,206, lower than the average of ₹4,299 a year earlier, according to data from JM Financial Institutional Securities. The company had announced a price cut in January, according to commodities consultancy BigMint.
JSW Steel, which primarily procures iron ore from NMDC, said earlier this month that a further drop in iron ore prices is expected in the first quarter of the ongoing fiscal year. Revenue from its iron ore vertical fell nearly 2% during the quarter.
The Board of Directors of the Company has proposed a final dividend of ₹1 per share subject to approval of shareholders. In addition, the first interim dividend of Rs. 2.30 per equity share for FY 2024-25 has been paid.
Commenting on the financial performance Amitava Mukherjee, Chairman and Managing Director, NMDC, stated, “Our focus has always been on consistent, year-on-year progress to reach the final milestone of 100 MTPA in the next five years. What matters is that we stay on track and keep building on our momentum. The initiatives we’ve undertaken in recent years are now translating into tangible results, and that gives us confidence in the direction we’re headed.”
In the ongoing quarter, the focus remains on innovation, sustainability, and value creation to remain on track to achieve long-term targets, he said. As per the company, its quarterly iron ore production was at 13.31 million tonne (MT) and sales at 12.67 MT.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
