NMDC, India's single largest iron ore producer and a Navratna PSU, has released its April business update, indicating an increase in iron ore sales compared to the year-ago period. Despite a slight drop in total iron ore production, the company's sales figures reflect positive momentum in its operations.
According to the update, NMDC's iron ore sales surged to 3.53 megatonne (MT) in April 2024, marking an increase from the same period last year. However, the total iron ore production saw a slight decline, dropping to 3.48 MT from 3.51 MT year-on-year.
In Chhattisgarh, NMDC recorded a 6 per cent decline in production, with output decreasing to 2.35 MT from 2.5 MT in the previous year. Despite this, the company managed to achieve a 3 per cent growth in sales, with figures reaching 2.74 MT in April 2024 compared to 2.66 MT in April last year.
Meanwhile, in Karnataka, NMDC reported an increase in iron ore production, reaching 1.13 MT compared to 1.01 MT in April 2023. Total iron ore sales in the region also showed a slight improvement, rising to 0.79 MT from 0.77 MT in the previous year.
Additionally, NMDC has revised its iron ore prices, increasing lump ore prices by Rs 400 per ton to Rs 6,200 per ton and fines by Rs 200 to Rs 5,260 per ton.
NMDC, known for its highly mechanised iron ore mines in Karnataka and Chhattisgarh, is recognized as one of the world's leading low-cost producers of iron ore. Apart from its iron ore operations, NMDC also operates India's sole mechanised diamond mine located in Panna, Madhya Pradesh.
The positive performance of NMDC reflected in the stock market, with shares of the company reaching a 14-year high during Monday's trading session. On Wednesday, the shares continued to surge, touching as high as Rs 267.30 on the National Stock Exchange (NSE). This marks a significant milestone, as the stock last crossed the Rs 270 level back in 2011. As of 12 noon, the stock was trading at Rs 267.30, reflecting a jump of 2.47 per cent.
