NMDC Q3 Results Review - Performance Remains Strong; More To Follow: Yes Securities

Yes Securities Report

NMDC Ltd.’s Q3 FY24 earnings were above the consensus estimates on the back of strong operational performance. NMDC reported its best ever Q3 performance in terms of production and sales since the company’s inception.

The realisation/tonne came in at Rs 4,679/tonne, reporting a rise of Rs 534/tonne from Q2 FY24, where the same was Rs 4,145/tonne. The company incurred about Rs 1,500 crores of capex during 9M FY24 and with the current expansion phase and the upcoming aspirational plans, it seems to be on the right path for its 100.0 mt target by 2030-31.

During the current financial year, NMDC expects to incur Rs 2,000 crores of capital expenditure in total and the company also maintained its production guidance of 47.0 to 49.0 mt.

The capex for the current financial year focuses a lot on improving the company’s evacuating lines in order to grow simultaneously on the production and the sales side.

In terms of the operational performance, the company reported an iron ore production of 31.8 mt and registered iron ore sales of 31.9 mt recording their highest ever nine-month volumes.

Q3 production volumes came in at 12.22 mt, reported a rise of 38% sequentially whereas the sales volumes for the quarter jumped 19% sequentially to 11.39 mt.

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