NMDC Says December Iron Ore Production Rises 5%, Sales Fall 7%

The iron ore production of NMDC Ltd., formerly known as National Mineral Development Corporation Ltd., rose 5.1% year-on-year to 4.71 million tonnes in December, while sales decline 6.7% during the same period to 3.91 million tonnes.

The production of iron ore in the Chhattisgarh and Karnataka units saw an increase of 3.34 million tonnes and 1.37 million tonnes, respectively. That compares with 3.21 million tonnes and 1.27 million tonnes, respectively, seen during the same period a year earlier, according to an exchange filing. The sales figures at the Chhattisgarh unit stood at 2.73 million tonnes, and those for the Karnataka unit were at 1.18 million tonnes.

The cumulative production from April to December stood at 30.77 million tonnes, while the total sales of iron ore stood at 31.80 million tonnes.  Chhattisgarh produced 20.47 million tonnes so far in this fiscal year, while it sold 22.43 million tonnes. Karnataka contributed 10.30 million tonnes to the cumulative production from April to December, while sales fell 9.37 million tonnes.

State-owned NMDC announced on Monday the extension of the tenure of its Chairman and Managing Director, Amitava Mukherjee, for another year.

Mukherjee, who currently serves as the company's Director (Finance), was previously given the additional charge of CMD.

NMDC stock fell as much as 1.40% during the day to Rs 65 apiece on the NSE. The stock closed 0.09% higher at Rs 65.98 per share. This compares with a 0.41% advance in the benchmark Nifty 50. It has fallen 6.39% in the last 12 months.

Out of the 22 analysts tracking, 13 have a 'buy' rating on the stock, three recommend a 'hold,' and six suggest a 'sell,' according to Bloomberg data. The average 12-month Bloomberg analyst consensus price target implies a potential downside of 22.9%.