NMDC Q3 Review - Margin Outlook Strong Despite Recent Price Cut: Motilal Oswal
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Motilal Oswal Report
NMDC Ltd. is a play on strong iron ore prices and volumes, which is well reflected in its Q3 FY21 result.
Ebitda at Rs 27.7 billion (up 70% YoY) and Ebitda/tonne at Rs 2,982 (up 54%) were the highest ever.
Margin should rise further in Q4 FY21 as the spot price (even after the correction in February 2021) is still approximately 17% higher than its Q3 FY21 average.
Moreover, volume should get a boost in FY22 from the restart of Donimalai mines.
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