- 12 Nov 2024
- ICICI Securities
NMDC REPORTED A STEADY PERFORMANCE IN Q2FY25
News: Total operating income for the quarter came in at ₹4,919 crore (up 23% YoY) with iron ore sales volume of 9.4 million tonne (down 2% YoY). Reported EBITDA for the quarter came in at ₹1,386 crore with corresponding EBITDA margins at 28% (down 150 bps YoY). EBITDA/tonne came in at ₹1,476/tonne in Q2FY25 vs. ₹2,323/tonne in Q1FY25 vs. ₹1,244/tonne in Q2FY24. PAT in Q2FY25 stood at ₹1,196 crore, up 17% YoY. The board of the company has approved issuing the bonus shares in the ratio of 2:1.
Views: Despite lower sales volume during the quarter, the company managed to report a double-digit topline growth, driven by a higher average realization of (₹5,026/tonne in Q2FY25 vs ₹4,146/tonne in Q2FY24). However, EBITDA/ton for the quarter was below ₹1500/ton due to increase in raw material and other operating cost. We maintain a positive stance on the company, considering the robust iron ore demand, impressive capacity expansion plans, cash-rich B/S and healthy ROCE profile.
Impact: Neutral