NMDC Q4 Results Review - Earnings Below Estimates; Outlook Remains Bright: Motilal Oswal

Motilal Oswal Report

NMDC Ltd.’s revenue was in line with our est. at Rs 65 billion (YoY/QoQ: +11%/ +20%), led by better realisations during the quarter. Iron ore production came in at 13.3 million tonne (YoY/QoQ: -6%/ +8%), while sales stood at 12.5 mt (YoY/QoQ: +1%/ +10%). Average selling price for the quarter improved to Rs 5,174/tonne (YoY/QoQ: +10%/+9%) versus our estimate of Rs 4,955/trillion.

Ebitda came in at Rs 21 billion (YoY/QoQ: -3%/+5%) and was below our estimate of Rs 23 billion. The miss was due to higher operating costs and royalty and cess. Ebitda/tonne stood at Rs 1,676 (YoY/QoQ: -4%/-5%) versus our estimate of Rs 1,819 in Q4 FY24.

Adjusted profit after tax for the quarter was Rs 14 billion (YoY/QoQ: -14%/ -19%) versus our estimate of Rs 19 billion. APAT was hit by soft operating performance and a higher tax outgo.

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