India’s National Mineral Development Corp (NMDC) reported a more than 15% increase in quarterly profit on Tuesday, helped by strong iron ore sales.
The state-owned miner’s profit rose to Rs 1,028 crore ($123.76 million) in the second quarter ended September 30, from Rs 889 crore a year earlier.
The company witnessed nearly 21% revenue growth from its iron ore segment over the previous year.
Domestic steel demand is likely to benefit from a rise in infrastructure projects after the monsoon season, analysts said. A strong recovery in the automotive and white goods sectors, driven by the ongoing festive season, is also expected to contribute to the positive trend.
India maintained robust steel production and demand during the generally slow quarter. In contrast, in the world’s largest steel producer, China, demand from the real estate sector was weak, dampening expectations of a faster economic recovery for the country.
Meanwhile, robust domestic demand for steel, which requires iron ore for its production, also helped boost sales of the mineral.
NMDC saw an increase in iron ore production and sales in the second quarter. Revenue from operations rose 20.6% to Rs 40.14 billion in the same period.
Peer Jindal Stainless last month reported doubled profits from a year ago, thanks to robust domestic demand.
Shares of NMDC are up nearly 42.4% so far this year, while those of Jindal Stainless are up 103.8%.
First print: November 14, 2023 | 8:00 pm IST