Sensex Trades Over 300 Points Higher; Dow Futures Trade Flat

The recent price volatility in the bullion market has rattled many traders. Even with the recent volatility in prices, gold remains among the best-performing commodities this year to combat the fallout from the coronavirus pandemic.

Moving on to stock-specific news...

Among the buzzing stocks, today is NMDC.

State-owned mining major National Mineral Development Corporation (NMDC) on February 8 said its consolidated net profit jumped 53% to Rs 21.1 billion for the quarter ended December. The company had posted a net profit of Rs 13.7 billion during the same quarter a year ago.

The company's operating profit for the quarter rose to the highest in eight years as the nation's largest iron ore miner lowered employee benefit costs. As a result, the state-run company's earnings before interest, tax, depreciation, and amortization (EBITDA) jumped 73.9% year-on-year (YoY) to Rs 27.7 billion during the quarter.

NMDC's employee expenses as a percentage of sales dropped 6.2% compared to 8.6% in the corresponding quarter. The company's revenue also rose 44.8% YoY to Rs 43.5 billion. The company, according to its investor presentation, reported the best ever turnover since inception. Its previous record was at Rs 36.5 billion in the third quarter of FY19.

NMDC, under the Ministry of Steel, is the country's largest iron ore miner. Besides iron ore, it is also involved in the exploration of a wide range of minerals like copper, rock phosphate, limestone, dolomite, and gypsum.

At the time of writing, NMDC share price was trading up by 0.5% on the BSE.

Moving on to news from the Indian pharma sector...

Torrent Pharmaceutical Q3FY21 Results: US Business Drags Down Revenue

Shares of Torrent Pharmaceuticals fell the most since December 2020 as sales declined in the drug maker's second-biggest market.

The company saw a 24% year-on-year (YoY) decline in sales in the US, owing to price erosion and the base impact of the Sartan portfolio discontinuation. The US business, according to the drug maker's FY20 annual report, contributes 19% to its overall sales. However, sales in India, Torrent Pharma's largest market, rose 7%YoY to Rs 9.9 billion. This growth was driven by market recovery, continued momentum in chronic brands, and a strong recovery in the sub-chronic brands.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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