NMDC amongst top losers

NMDC is amongst the top losers on the BSE currently. The stock which had closed yesterday at Rs.140.05, opened lower at Rs.138 and is now down almost 4% at Rs.134 levels, closer to its intra day low levels.

The stock is down after it posted a set of dismal numbers for Q2FY14. Despite an increase in sales volumes, lower sales realization pushed down the net profit of the company to Rs.1318 crore, down 21% (YoY). Its average realization was down 15% in Q2. Turnover was down 5% at Rs.2480 crore.

NMDC produced 5.94 million tonnes (MT) of iron ore while the volume of sales was 6.5 MT, which is 11% higher than the corresponding quarter last fiscal. The company has set a sales target of about 30 MT of iron ore in the current fiscal. Sales in the first half were 13.76 MT.

For the first time in one year, in this month, the company has hiked prices of lumps and fines of iron ore by Rs,100/tonne and hopefully, this will help shore up some of its earnings in Q3. Despite the slump in the performance, the company has been generous and declared a 300% interim dividend.