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NMDC: Lower royalty outgo lifts overall earnings amid volume de-growth in Q1FY25
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
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
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