NMDC increases price of lump iron ore by Rs 250 per tonne

28 May 2024 , 11:28 AM

Mining company and state-run NMDC Ltd. has raised lump iron ore and  iron ore fines prices. The increase  is effective from today, according to reports. NMDC has hiked lump iron ore price by ₹250 per tonne and iron ore fines price by ₹350 per tonne, according to sources. This will be the company’s second price rise in as many months.

NMDC increased lump ore prices by ₹400 and fines prices by ₹200 per tonne in April. Earlier this year, in March, the NMDC reduced lump sum and fine fees for the first time in eight months.

On Monday, the Navratna PSU released its March quarter results, with revenue growth of 11% year-on-year, which met expectations.

However, the company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) fell short of projections due to a larger royalty component and other expenses.

NMDC’s royalty as a percentage of sales was 47% at the end of the quarter, compared to 42% to 45% in previous periods.

NMDC experienced a loss of ₹30 Crore during the quarter due to interest on penalties for compensatory afforestation mandated by the Ministry of Forests.

At around 11.16 AM, NMDC was trading 0.46% higher at ₹261.40, against the previous close of ₹262.60 on NSE. The counter touched an intraday high and low of ₹265.65, and ₹258, respectively.

NMDC Ltd. is a Navratna company under the administrative jurisdiction of the Ministry of Steel, with its registered office in Hyderabad. It is the country’s greatest producer of iron ore. The company has iron ore mines in Bailadila, Chhattisgarh, and Donimalai, Karnataka.

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