NMDC Ltd.'s net profit rose in the second quarter of financial year 2025, but missed analysts' estimates.
The iron ore miner's net profit increased 17% year-on-year to Rs 1,196 crore in the quarter ended September, according to an exchange filing on Monday. This compares with the Rs 1,432-crore consensus estimate of analysts polled by Bloomberg.
NMDC Q2 FY25 Earnings Highlights (Consolidated, YoY)
Revenue up 23% to Rs 4,919 crore versus Rs 4,014 crore (Bloomberg estimate: Rs 5,058 crore)
Ebitda up 16% to Rs 1,386 crore versus Rs 1,190 crore (Bloomberg estimate: Rs 1,723 crore)
Margins at 28.2% versus 29.7% (Bloomberg estimate: 34.1%)
Net profit up 17% to Rs 1,196 crore versus Rs 1,025 crore (Bloomberg estimate: Rs 1,432 crore)
Segment-Wise Revenue
The uptick in NMDC's revenue was led by strong growth in both its segments. The company's primary segment of iron ore, which accounted for 95% of its second-quarter revenue, saw a growth of 18% year on year to Rs 4,749 crore.
The company's pellets and other mineral segment saw a 3.2 times annual growth in revenue to Rs 199 crore. However, segment saw its losses expand on an annual and sequential basis to Rs 141 crore.
As per Systematix, the company's average monthly iron ore (fines) prices also stood higher on an annual basis during the quarter, which is positive for the company's realisations.
Margins Contract 150 Basis Points
While NMDC's second-quarter earnings before interest, taxes, depreciation and amortisation did see an uptick, the company's margin saw a contraction on an annual basis due to:
2.29 times higher selling expenses, including freight.
57% annual increase in consumption of stores and spares expenses.
18% annual rise in other expenses.
6% annual uptick in change in finished good inventories.
Shares of NMDC closed 1.15% lower at Rs 232.95 apiece on the BSE, compared to a flat benchmark Sensex.
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