NMDC Ltd's Q3FY19 standalone net profit rises 77.8% yoy to Rs1,577cr: Beats Estimates

The company’s standalone revenue in the quarter stood at Rs3,649cr, up 47.8% yoy and 49.7% qoq.

Jan 31, 2019 06:01 IST India Infoline Research Team


Standalone Results Q3FY19: (in Rs cr)

Q3FY19 YoY (%)
Revenue 3,649 47.8
EBITDA 2,154 78.1
EBITDA Margin (%) 59 1,003
Net Profit (adjusted) 1,577 77.8
***EBITDA margin change is bps

NMDC Ltd reported a strong earnings beat against the consensus estimates for Q3FY19 due to higher contribution from export sales. The company's revenue rose 47.8% yoy to Rs3,649cr (expectation Rs3,153cr). EBITDA stood at Rs2,154cr, up 78.1% yoy against estimates of Rs1,722cr. EBIDTA margin rose by 1,003bps yoy to 59%. Net Profit too rose significantly by 77.8% to stand at Rs1,577cr against the estimate of Rs1,145cr.
  • Production for the quarter rose 11.5% yoy to 9.5mn ton; sales for the quarter stood at 8.7mn ton, up 8.6% yoy.
  • Revenues for the quarter were supported by a ~36% yoy increase in blended realizations due to higher export sales. Blended realizations stood at Rs4,175 per ton.
  • EBITDA for Q3FY19 stood Rs211cr lower due to provisions and one-time expenses. During the quarter, the company made a provision of Rs175cr towards the expected credit losses. The company also reported one-time expenses towards doubling of railway line between Kirandul and Jagdalpur for Rs130cr and Rs36cr towards mine closure obligation.
  • EBITDA per ton for the quarter stood at Rs2,465 per ton, up 15.2% yoy.

Technical View:

NMDC Ltd ended at Rs96.80, up 0.7 points, or 0.73%, from its previous close of Rs96.10 on the BSE. The scrip opened at Rs96.50 and touched a high and low of Rs97.80 and Rs94.70, respectively. A total of 94,80,886 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200-DMA.

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