NMDC shares jump 5% amid surge in iron ore prices, China stimulus measures

Iron ore—which had been one of the year’s worst-performing major commodities as China’s economy slowed—has been revived as Beijing moved more aggressively to shore up the economy. Central to that effort have been initiatives to drag the real estate market out of a years-long slump that’s damaged activity and confidence, the report added. 

The nation has witnessed strong growth of 7% year-on-year in iron ore output, with production increasing from 257 million tonnes in FY23 to an impressive 275 million tonnes in FY24, the CMD said while addressing NMDC's 66th Annual General Meeting (AGM).

For FY24, NMDC's EBITDA stood at ₹8,709 crore, representing a 28% growth from the previous financial year. The company's operating profit margin in 2023–24 was 34%.

The company's highest-ever capital expenditure of ₹2,066 crore was expended towards capacity building in FY24, which was 17% north of the capex target of ₹1,769 crore.

NMDC reported an 18% growth in its consolidated net profit at ₹1,963.35 crore during the June 2024 quarter (Q1 FY25), on account of reduced expenses. It had posted a net profit of ₹1,661.04 crore in the April-June period of the preceding financial year, the company said in an exchange filing on Monday.

The company is on track to achieve a production target of 50 million tonne per annum by the end of FY25, it said.

NMDC, under the Ministry of Steel, is India's largest iron ore miner, contributing to around 20% demand for the key steel making raw material.

NMDC stock performance

Shares of the company have rallied 66% in the past one year and over 157% in the past five years.