Volume rebound, moderate valuation positive for NMDC

THE COMPASS Iron ore mining major NMDC's results for the April-June quarter (Q1) of FY25 were better than estimates.

- DEVANGSHU DATTA

Weak volumes were balanced off by higher realisations, better average selling price (ASP) and lower royalties which boosted bottomline.

The revenue was in line with estimates at ₹5,400 crore, flat yearon-year (Y-o-Y) and down 17 per cent quarter-on-quarter (Q-o-Q).

The sequential decline was primarily due to weak volumes.

Iron ore production stood at 9.19 million tonnes (mt), down 14 per cent Y-o-Yand down 31 per cent Qo-Q, while sales were 10.1mt, down 8 per cent Y-o-Yand down 20 per cent Q-o-Q. The ASP improved to 5,337 per tonne, up 9 per cent Y-oYand up 4 per cent Q-o-Q.

The earnings before interest, taxes, depreciation, and amortization (Ebitda) was reported at 2,300 crore up 17 per cent Y-o-Y, up 11 per cent Q-o-Q. The improvement was due to lower royalty expenses and lower operating costs. The Ebitda per tonne stood at ₹2,324, up 28 per cent Y-o-Yand up 39 per cent Q-oQ. The adjusted PAT was 2,000 crore, up 19 per cent Y-o-Y and up 37 per cent Q-o-Q.