Shares of public sector company NMDC or National Mineral Development Corporation witnessed a surge on October 23 after the company announced a hike in the price of its lump ore and fines, which was the second price hike by the company in October.
NMDC has raised the price of lump ore by Rs 600 to Rs 6,350 per tonne, while that of fines by Rs 400 to Rs 5,410 per tonne, the company said in a regulatory filing on October 22.
These latest hikes have pushed NMDC’s lump ore and fines prices to their highest since May. Interestingly, NMDC’s price adjustments come at a time when global iron ore prices are on a downward trend. The commodity has declined 11 per cent, currently trading at SG$101, down from a recent high of SG$114 hit on October 8.
Earlier in October, NMDC had increased the price of lump ore to Rs 5,750 per tonne and fines to Rs 5,010 per tonne.
In the first quarter, NMDC reported a consolidated net profit of Rs 1,970.8 crore for the June period, registering a 19 per cent growth from Rs 1,652.2 crore in the same period last year, driven by better realisations. The company’s performance benefited from strong demand for iron ore, a key raw material for steelmaking, as the government boosts investment in infrastructure. On a sequential basis, NMDC’s net profit rose nearly 40 per cent.
The company operates four iron ore mines in Chhattisgarh and Karnataka.
At around 10:40 am, the company’s shares were trading at Rs 223.5 on the NSE, up 4 per cent from its previous close.
