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Informist, Tuesday, Aug 13, 2024

By Narayana Krishna

HYDERABAD - Aided by improved realisation, public sector iron ore company NMDC Ltd posted a better-than-expected net profit for the Apr-Jun quarter, while revenue missed Street estimates. A fall in operating expenses, including royalty payments, also aided the company in reporting higher-than-expected profit for the quarter.

NMDC's net profit for the June quarter rose 20.2% year-on-year to 19.84 bln rupees, while revenue from operations for the quarter fell 0.3% to 53.78 bln rupees. Sequentially, the net profit rose 35.7%, while revenue fell 17%. Analysts had estimated the company's net profit to be 16.7 bln rupees on revenue of 55.2 bln rupees.

The average realisation for the quarter was pegged at 5,304 rupees per tonne, an improvement of 3% year-on-year. Analysts had expected the company's average realisation to be 5,329 rupees for the quarter. NMDC sold 10.07 mln tonnes of iron ore during Apr-Jun, down 8% year-on-year and 20% lower sequentially due to weak demand and disruptions at mining sites. The company took a total price hike of 650 rupees during the quarter, a key reason for the improvement in realisations.

The company's total expenses fell 10.4% year-on-year to 31.1 bln rupees for the quarter. Expenses related to royalty and other levies fell 12.8% year-on-year to 20.2 bln rupees. Selling expenses, including freight costs, also declined by 10.8% year-on-year to 769 mln rupees, boosting the margins.

NMDC reported its Apr-Jun earnings before interest, tax, depreciation, and amortisation or EBITDA margin at 51% compared to 42% a year ago, while its EBITDA for the quarter was 27.25 bln rupees. EBITDA per tonne was nearly 2,700 rupees for the quarter. Analysts had expected NMDC's June quarter EBITDA to be 20.6 bln rupees.

At 1054 IST, shares of NMDC traded at 226.78 rupees on the National Stock Exchange, up 1.2% from its previous close.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Manisha Baxla

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