NMDC Records Strong Q3 Growth with 62.6% Rise in Net Profit, Declares Interim Dividend

15 Feb 2024 , 11:05 AM

NMDC, India’s largest iron ore producer, reported a substantial 62.6% increase in consolidated net profit for the December quarter, reaching ₹1,469.73 Crore.

The net profit showed a robust sequential growth of 43%, rising from ₹1,024.86 Crore in the previous quarter. On a standalone basis, NMDC’s net profit surged by 67.7% YoY to reach ₹1,492.3 Crore. Consolidated revenue from operations witnessed a significant year-on-year increase of 45%, reaching ₹5,409.90 Crore.

On a quarter-on-quarter basis, revenue experienced a notable surge of 34.7%. NMDC’s board declared an interim dividend of ₹5.75 per equity share for the financial year 2023-24, with the record date set for February 27. The positive financial results coincide with robust demand for iron ore, a crucial ingredient in steel production.

The government’s increased infrastructure spending, as reflected in the interim budget, is expected to boost domestic steel demand, benefiting NMDC. NMDC operates four iron ore mines in Chhattisgarh and Karnataka states. Iron ore sales in the quarter marked a notable 19% YoY increase, totaling ₹113.9 Crore.

The company is capitalizing on favorable market conditions, having raised iron ore prices by ₹400 per tonne in the previous month, driven by heightened demand for this essential raw material.

NMDC Limited, formerly National Mineral Development Corporation, is a prominent Indian public sector undertaking involved in the exploration of various minerals, including iron ore, copper, rock phosphate, and more.

It stands as India’s largest iron ore producer and exporter, operating multiple mechanized mines in Chhattisgarh and Karnataka. Additionally, NMDC operates the only mechanized diamond mine in the country, located at Panna in Madhya Pradesh.

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