- 08 Aug 2022
- ICICIdirect Research
NMDC REPORTS BETTER-THAN-EXPECTED PERFORMANCE IN Q1FY23
NMDC - 241 Change: -2.82 (-1.16 %)News: For Q1FY23, NMDC reported iron ore sales volume of 7.8 million tonnes (MT), down 17% YoY, 36% QoQ, broadly in line with our estimate of 7.7 MT. For Q1FY23, NMDC reported topline of Rs 4767 crore, down 27% YoY, 29% QoQ, higher than our estimate of Rs 4022 crore. EBITDA for the quarter was at Rs 1900 crore, down 55% YoY, 29% QoQ, higher than our estimate of Rs 1340 crore. EBITDA margin for the quarter was at 39.9% compared to 64.1% in Q1FY22, 40.1% in Q4FY21, higher than our estimate of 33.3%. PAT for the quarter was at Rs 1470 crore, down 19% QoQ, 54% YoY, higher than our estimate of Rs 1005 crore
View: For Q1FY23, NMDC reported a better-than-expected performance primarily on the back of higher-than-expected blended iron ore realisations. Iron ore realisations for Q1FY23 were at Rs 6050/tonne, up 13% QoQ, higher than our expectation of Rs 5350/tonne. Aided by healthy realisation, topline, EBITDA and PAT came in higher than our estimate. On account of better-than-expected realisations, EBITDA/tonne came in higher than our estimate. EBITDA/tonne for the quarter was at Rs 2436/tonne, up 12% QoQ but down 45% YoY, higher than our estimate of Rs 1750/tonne.
Impact: Positive.