BENGALURU, Aug 11 (Reuters) – India’s National Mineral Development Corp (NMDC) (NMDC.NS) on Friday reported an increase in quarterly revenue, aided by strong iron ore gross sales.

The firm posted a revenue of 16.50 billion rupees for the primary quarter ended June 30, up 12% from a yr in the past.

Increased financial exercise and better infrastructure spending in India have boosted metal and cement consumption forward of state-level and nationwide elections due subsequent yr, analysts stated.

NMDC’s income from operations rose 13.2%, to 53.95 billion rupees, whereas uncooked materials prices fell 82.6% resulting from decrease coal and coke costs.

Demand and costs for iron ore rose globally this yr as manufacturing dropped 10% from January to May in China, forcing the world’s largest shopper to import extra iron ore, driving up costs worldwide.

Meanwhile, strong home demand for metal, which requires iron ore for its manufacturing, additionally helped increase gross sales of the mineral.

Last month, state-owned NMDC said it bought a complete of 11.15 million tonnes of iron ore within the quarter, its highest ever.

Steel producers akin to Jindal Stainless (JIST.NS) and JSW Steel (JSTL.NS) reported good-looking earnings final month on the again of home demand.

Shares of NMDC settled flat forward of the outcomes. The inventory fell 6.2% in the course of the April-June quarter.

Reporting by Biplob Kumar Das in Bengaluru; Editing by Pooja Desai

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