Revenue increased by 30% on a year-on-year basis to ₹6,378.1 crore, which is also higher than the CNBC-TV18 poll of ₹5,825 crore.
NMDC’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter rose by 44% from last year to ₹1,993 crore, which is in-line with the CNBC-TV18 poll of ₹1,997 crore.EBITDA margin for the period expanded by 300 basis points to 31.2% from 28.2% last year. However, the CNBC-TV18 poll had expected margins to expand further, towards the 34% mark. Lower cost of production, higher realisations and operating leverage contributed to the expansion in NMDC’s margins.
In its provisional update shared earlier this month, NMDC had reported a 23.3% growth in Iron Ore production to 10.2 MT, while dispatches had increased by 10.2% from last year to 10.7 MT.
NMDC had recently announced a cut in the prices of lumps by ₹550 per tonne and for fines by ₹500 per tonne. Clarity behind such a price cut would be awaited from the management, along with the volume and capex outlook for the rest of the year.
Shares of NMDC are trading 3.5% higher after the earnings announcement at ₹77.23. The stock has risen 17% so far on a year-to-date basis.
