NMDC Ltd's Q2FY19 standalone net profit declines 24.6% yoy to Rs637cr : Misses Estimates

The company’s standalone revenue stood at Rs2,438cr, up 0.7% yoy and 0.7% qoq.

Nov 13, 2018 10:11 IST India Infoline Research Team


Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 2,438 0.7
EBITDA 1,259 4.7
EBITDA Margin (%) 51.7 197
Net Profit (adjusted) 637 [24.6]
***EBITDA margin change is bps

NMDC missed earnings estimates for Q2FY19, due to increase in expenses associated with provisioning as well as one-time expenses. Revenue rose by 0.7% yoy to Rs2,438cr (expectation Rs2,559cr). EBITDA stood at Rs1,259cr, up 4.7% yoy against estimates of Rs1,397cr. EBIDTA margin rose by 197bps yoy to 51.7%. Net Profit stood at Rs637cr against an estimate of Rs930cr.
  • Production for the quarter stood at 5.34mn tonnes, down 22.3% yoy. Sales for the quarter fell by 20.9% yoy to 6.56mn tonnes.
  • Revenue for the quarter was supported by a sharp rise in blended realisations. Prices for lump ore stood at Rs3,448 per tonne in Q2FY19 (up 35.9% yoy), while prices for fines stood at Rs2,760 (up 29.3% yoy). Average prices for the quarter stood at Rs2,999 per tonne (up 31.8% yoy).
  • The company not had any export sales in 1HFY19 due to strong domestic pricing environment.
  • EBITDA for Q2FY19 was Rs200cr lower due to provisions and one-time expenses. During the quarter, the company made a provision of Rs103cr towards expected credit losses. The company also reported one-time expenses towards doubling of railway line between Kirandul and Jagdalpur for Rs77cr and Rs20cr towards mine closure obligation.

Technical View:

NMDC Ltd ended at Rs. 107.45, up by 0.5 points or 0.47% from its previous closing of Rs. 106.95 on the BSE.
The scrip opened at Rs. 107.80 and touched a high and low of Rs. 108.05 and Rs. 105.15 respectively. A total of 20,81,664 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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