- 15 Nov 2022
- ICICIdirect Research
NMDC REPORTS SUBDUED Q2FY23 PERFORMANCE ON MUTED IRON ORE REALISATIONS
NMDC - 236 Change: -2.94 (-1.23 %)News:
For the quarter, NMDC’s revenue from operations stood at Rs 3328 crore, down 51% YoY and 30% QoQ, lower than our estimate of Rs 4046 crore. EBITDA for the quarter stood at 854 crore, down 73% YoY and 55% QoQ, lower than our estimate of Rs 1305 crore. EBITDA margin for the quarter stood at 25.7% lower than our estimate of 32.3% (EBITDA margin of 45.8% in Q2FY22 and 39.9% in Q1FY23). Ensuing PAT for the quarter stood at Rs 889 crore, down 62% YoY and 40% QoQ, lower than our estimate of Rs 1008 crore.
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On the back of lower than expected iron ore realisations, NMDC reported a muted set of numbers for Q2FY23, wherein topline, EBITDA and PAT all came in below our estimate. For Q2FY23, NMDC reported sales volumes 8.4 Million Tonnes (MT), down 6% YoY however up 8% QoQ, lower than our estimate of 8.7 MT. Iron ore sales realisation for the quarter stood at Rs 3980/tonne, down 48% YoY and 36% QoQ, lower than our estimate of Rs 4500/tonne. EBITDA/tonne for the quarter stood at Rs 1013/tonne, down 71% YoY and 58% QoQ, lower than our estimate of Rs 1500/tonne
Impact:
Negative