NMDC Ltd (Q2 FY14)

India Infoline News Service | Mumbai |

NMDC reported a decline of 5.1% yoy in topline due to lower realisations.

CMP Rs138, Target Rs145, Upside 5.1%

  • NMDC’s topline of Rs24.8bn was marginally higher than our estimate, boosted by an increase in the share of exports

  • An increase in exports arrested the decline in ASPs at 3.3% qoq. ASP for the quarter stood at Rs3,815/ton as the company had taken price cuts during the quarter

  • Sales volume increased by 11% yoy to 6.5mn tons; Production too remained strong at 10.4% yoy to 5.9mn tons

  • NMDC exported 0.7mn tons of iron ore against 0.4mn tons in Q2 FY13 and 0.5mn tons in Q1 FY14

  • NMDC has increased prices of lumps and fines in October for the first time in the last one year

  • Downgrade to Market Performer after the recent run up in the stock, while maintaining our 9-month price target at Rs145

Result table
(Rs mn)
Q2 FY14
Q2 FY13
% yoy
Q1 FY14
% qoq
Net sales
24,799
26,118
(5.1)
28,706
(13.6)
Material costs
(1,183)
27
(4,496.7)
(900)
31.4
Personnel costs
(1,447)
(1,440)
0.5
(1,483)
(2.5)
Selling expenses
(3,664)
(2,127)
72.3
(2,911)
25.9
Other overheads
(3,569)
(3,231)
10.5
(4,361)
(18.2)
Operating profit
14,936
19,347
(22.8)
19,052
(21.6)
OPM (%)
60.2
74.1
(1385) bps
66.4
(614) bps
Depreciation
(348)
(332)
4.9
(364)
(4.3)
Other income
5,384
5,831
(7.7)
5,209
3.4
PBT
19,972
24,846
(19.6)
23,897
(16.4)
Tax
(6,788)
(8,062)
(15.8)
(8,176)
(17.0)
Effective tax rate (%)
34.0
32.4

34.2

Adjusted PAT
13,184
16,785
(21.5)
15,722
(16.1)
Adj. PAT margin (%)
53.2
64.3
(1110) bps
54.8
(161) bps
Reported PAT
13,184
16,785
(21.5)
15,722
(16.1)
Ann. EPS (Rs)
13.3
16.9
(21.5)
BSE 130.65 2.20 (1.71%)
NSE 130.60 2.50 (1.95%)

***Note: This is a NSE Chart

 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.