NMDC rose 0.33% to Rs 134.90 at 9:35 IST on BSE after the Ministry of Steel directed the company to enhance production of iron ore incrementally.
Meanwhile, the S&P BSE Sensex was down 122.23 points or 0.46% at 26,659.21
On BSE, so far 24,433 shares were traded in the counter as against average daily volume of 24,000 shares in the past two weeks.
The stock was volatile in early trade. The stock hit day's high of Rs 136.50 and day's low of Rs 133.65 so far during the day. The stock hit a 52-week high of Rs 196.15 on 6 June 2014. The stock hit a 52-week low of Rs 123.10 on 12 March 2014.
The large-cap company has an equity capital of Rs 396.47 crore. Face value per share is Re 1.
The Ministry of Steel after trading hours yesterday, 15 December 2014, said that the Minister of Steel and Mines Narendra Singh Tomar has directed NMDC to enhance production of iron ore incrementally and aim for annual production of 75 million tonnes iron ore by 2018-19 and 100 million tonnes by 2020-21, to increase iron ore availability in the country. The target was assigned in a review meeting with NMDC officials held in New Delhi. In 2013-14, iron ore production by NMDC was 30 million tonnes. After due deliberations, it was decided that NMDC will increase production every year to reach the target of 75-100 million tones, the steel ministry said. It was also decided to incorporate this target in the Memorandum of Understanding (MoU) that the company signs with the government, the steel ministry said. Tomar underscored the fact that raw material availability at reasonable prices is essential for economic development of the country. He directed NMDC to use all resources in its command, to achieve this ambitious target and remarked that this achievement will be the most important criterion while assessing the performance of the company. This is an important decision, which will definitely enhance availability of iron ore in the country and as a result steel industry will have access to iron ore at reasonable prices, the steel ministry said in a statement. Annual production of steel in the country is planned to be increased to a level of 300 million tonnes by 2025. That will necessitate production of 500 million tonnes of iron ore annually. To meet country's requirement of iron ore, it is essential that NMDC enhances its iron ore production substantially through all possible means, the steel ministry said.
NMDC's net profit rose 18.8% to Rs 1566.75 crore on 25.2% rise in net sales to Rs 3102.24 crore in Q2 September 2014 over Q2 September 2013.
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State-run NMDC is India's single largest iron ore producer and exporter. The Government of India (GoI) holds 80% stake in NMDC (as per the shareholding pattern as on 30 September 2014).
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