NMDC Q4 Review - Earnings Surge To Continue: Systematix

NMDC Ltd. (Source: Company website)

NMDC Q4 Review - Earnings Surge To Continue: Systematix

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Systematix Research Report

NMDC Ltd.’s Q4 FY21 adjusted Ebiitda of Rs 44.7 billion (200.4% YoY, 61.4% QoQ) was 6% above our estimates.

Net sales stood at Rs 68.5 billion (up 114.8% YoY, up 57.2% QoQ).

Iron ore production for the quarter was 12.3 million tonne (up 29.8% YoY, up 28.1% QoQ) with sales of 11.1 million tonne (up 28.8% YoY, up 18.1% QoQ).

Average sales realisation stood at Rs 6,169/tonne (up 66.8% YoY, 33.2% QoQ).

The cost of production (excluding selling expenses, royalty) was $7.4/tonne (down 49.5% YoY, down 30.7% QoQ).

We raise our FY22E/23E Ebitda by 71%/49% based on-

  1. a sharp increase in iron ore prices,

  2. higher volumes from the existing Chhattisgarh iron ore mines and the restart of seven million tonnes Donimalia, Karnataka iron ore mines.

Click on the attachment to read the full report:

Systematix NMDC - Q4FY21 Result Update.pdf

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