NMDC slides on buzz it keeps December prices unchanged

capital market | Mumbai |

NMDC rose 2.99% to Rs 158.90 at 13:36 IST on BSE on reports the company has kept iron ore prices unchanged for all categories in December 2012 after reducing them in the last two months.

Meanwhile, the BSE Sensex was down 45.94 points, or 0.24%, to 19,440.86.

On BSE, 75,000 shares were traded in the counter as against an average daily volume of 44,657 shares in the past one quarter.

The stock hit a high of Rs 164.20 and a low of Rs 158.65 so far during the day. The stock had hit a 52-week high of Rs 206.35 on 16 February 2012. The stock had hit a 52-week low of Rs 136.15 on 20 December 2011.

The stock had underperformed the market over the past one month till 6 December 2012, falling 12.01% compared with the Sensex's 3.56% rise. The scrip had also underperformed the market in past one quarter, falling 10.57% as against Sensex's 12.34% rise.

The large-cap state-run company has an equity capital of Rs 396.47 crore. Face value per share is Re 1.

NMDC's acting chairman C S Verma was quoted by media as saying that the company has decided to keep the prices of iron ore lumps and fines unchanged for December 2012.

According to reports, in the last two months, the largest domestic iron ore producer had cut prices between by up to 11% for both categories, lumps and fines. Accordingly, average price for iron ore lumps with 65% iron content are hovering around Rs 5400 per tonne. Average price of fines, which have iron content of less than 60%, are at Rs 2,600 per tonne.

Iron ore lumps and fines are key inputs in manufacturing steel.

NMDC's net profit fell 14.5% to Rs 1678.62 crore on 14.7% decline in net sales to Rs 2611.84 crore in Q2 September 2012 over Q2 September 2011.

State-run NMDC is India's single largest iron ore producer and exporter, presently producing about 30 million tonnes of iron ore from 3 fully mechanized mines in Chhattisgarh and Karnataka. As on 30 September 2012, the government held 90% in NMDC.

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