Shares of NMDC surged more than 6 per cent to Rs. 181 after the state-owned miner reported better-than-expected quarterly numbers.
NMDC reported 34 per cent year-on-year jump in its net profit to Rs. 1,962 crore, against Rs. 1,465 crore in the previous fiscal.
Its revenue grew by a strong 21.26 per cent in the quarter to Rs. 3,884 crore. Analysts say mining ban in Orissa might have helped the company to report this strong growth in revenue. The company reported 16 per cent y-o-y growth in its volume for the fiscal 2014.
The company also reported an improvement in profitability as its ebitda per ton (gross profit on mining per ton of ore) improved 3 per cent quarter-on-quarter to Rs. 2,627 per ton.
“We have for the first time this year crossed 30 million tons (MT) production and sales. The production and sales of iron ore during the last financial year stood at 30.02 MT and 30.50 MT respectively,” NMDC chief managing director Narendra Kothari said.
The miner aims to achieve 31 MT of production and 32 MT of sales this year, he added.
However, Citi has downgraded NMDC to sell, citing rich valuations. The stock has risen nearly 16 per cent in last one month against 9 per cent gain in Nifty in the same period.