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Informist, Tuesday, May 27, 2025

By Narayana Krishna

HYDERABAD - Public-sector iron ore major NMDC Ltd. Tuesday reported a net profit of INR 14.96 billion for the March quarter, up 2.33% on year but much lower than the analysts' expectations. However, the company's reported a better than expected revenue for the quarter at INR 69.53 billion, up 7.38% on year. While the net profit growth was lower than the last three quarters, revenue growth was lower from the last two quarters.

Analysts had projected NMDC March quarter net profit at INR 18.54 billion on revenue of INR 67.00 billion. For a year ago quarter, NMDC reported a profit of INR 14.62 billion on revenue of INR 64.75 billion. Sequentially, the company net profit was down 23% and revenue up 6.5%.

While price cut in January impacted the net profit, the company's revenue growth was robust, despite production disruptions at its Chhattisgarh mining site for 15 days during the quarter. NMDC sold 12.7 million tonne of iron ore in March quarter, marking 1% on year growth in volumes. The company took a price cut of INR 350 per tonne in January.

NMDC total expenses for the quarter were up 14.3% on year to INR 50.9 billion. The royalty expenses for the quarter declined 5.5% on year to INR 29 billion. Sales expenses rose nearly 24% on year to INR 1.2 billion.

The average price realisation for the quarter declined to INR 5,007 per tonne from INR 5,125 a year ago. The earnings before interest, tax, depreciation and amortisation for the March quarter declined 1% on year to INR 25.38 billion. The EBITDA margin for the quarter fell by 200 basis points to 37%, according to the company's presentation.

NMDC said, as of Mar. 31, the trade receivables from Rashtriya Ispat Nigam Ltd. on account of iron ore supplies were INR 40.49 billion. The company is not making any provisions towards this outstanding as it is expecting to get the payment once the operations at Visakhapatnam steel plant is stabilised. NMDC board Tuesday approved to pay INR 1 per share as final dividend.

For 2024-25 (Apr-Mar), NMDC reported a net profit of INR 66.93 billion against INR 56.32 billion a year ago. Its revenue for the full year was INR 236.68 billion, as compared with INR 212.94 billion in FY24. Tuesday, shares of NMDC ended at INR 72.74 on the National Stock Exchange, down 0.7%.  End

Edited by Akul Nishant Akhoury

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