NMDC has bounced back in the last one quarter on expectations that the economy has bottomed out and steel demand in the country would rebound over the next one year.
NMDC’s topline of Rs28.2bn was marginally lower than our estimate on account of lower export sales
Lower share of exports of total sales volume offset the impact of price hikes announced by the company in Q3 FY14. Realisations were marginally lower on a qoq basis against our estimate of 4% increase
Sales volume jumped 41.3% yoy to 7.5mn tons; Production too remained strong at 39.6% yoy to 7.4mn tons
NMDC exported 0.4mn tons of iron ore against 0.4mn tons in Q3 FY13 and 0.7mn tons in Q2 FY14
Operating profit of Rs19bn was inline with our estimate as the impact of lower than expected realisation was offset by lower selling expenses
NMDC has increased prices of fines in February by Rs100/ton
Maintain Market Performer with a revised price target at Rs154.