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NMDC: Lower royalty outgo lifts overall earnings amid volume de-growth in Q1FY25

ICICIdirect Research 16 Aug 2024 DISCLAIMER

Total operating income for the quarter came in at ₹5,415 crore (flat YoY, down 17% QoQ) with iron ore sales volume of 10.1 million tonne (down 8% YoY, 20% QoQ).
EBITDA came in at ₹2,340 crore with corresponding EBITDA margins at 43% (up 627 bps YoY).
EBITDA/tonne came in at ₹2,323/tonne in Q1FY25 vs. ₹1,676/tonne in Q4FY24 vs. ₹1,816/tonne in Q1FY24.  PAT in Q1FY25 stood at ₹1,964 crore, up 18% YoY.
The sharp decline in sales volume has dented the overall topline growth. However, this was partially mitigated by a higher average realization of ₹5,304/tonne in Q1FY25 vs ₹5,125/tonne in Q4FY24 vs ₹4,850/tonne in Q1FY24. On a positive note, the company was able to report more than ₹2,000 as EBITDA/tonne on account of reduction of royalty and other expenses. 
We await management commentary on near term growth prospects given the subdued demand environment and muted steel price outlook

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