- 28 May 2024
- ICICI Securities
NMDC LTD. REPORTED MUTED PERFORMANCE IN Q4FY24
NMDC - 65 Change: -0.78 (-1.19 %)News: Total operating income for the quarter came in at ₹6,489 crore (up 11% YoY & 20% QoQ) with iron ore sales volume of 12.4 million tonne (flat YoY, up 9% QoQ). Reported EBITDA for the quarter came in at ₹2,102 crore with corresponding EBITDA margins at 32% (down 460 bps YoY). EBITDA/tonne for the quarter came in at ₹1,690/tonne in Q4FY24 vs. ₹1,762/tonne in Q3FY24 vs. ₹1,742/tonne in Q4FY23. PAT in Q4FY24 stood at ₹1,413 crore (also impacted by higher effective tax rate). The company declared final dividend of ₹ 1.5 per share with total dividend declared for FY24 pegged at ₹ 7.25/share.
Views: Topline growth was supported by higher average realization (₹5,167/tonne in Q4FY24 vs ₹4,679/tonne in Q3FY24 vs ₹4,663/tonne in Q4FY23). However, EBITDA/tonne fell by 4% QoQ to ₹1,690/tonne impacted by rise in royalty and other expenses. We await management commentary on near term growth prospects and iron ore pricing scenario amid global iron ore prices rebounding from their lows in the recent past due to improved sentiment in Chinese markets. On the cash flow perspective, company realised healthy ~₹ 7,400 crore as CFO and ~₹ 5,500 crore as FCF and continues to possess cash positive b/s.
Impact: Negative