NMDC loses shine after Q4 PAT falls 36% YoY to Rs 1,815 cr

NMDC declined 1.80% to Rs 124.10 after the PSU company reported a 36% fall in standalone net profit to Rs 1,815.05 crore in Q4 FY22 as against Rs 2,837.58 crore in Q4 FY21.

Net sales was at Rs 6,702.24 crore for the quarter ended 31 March 2022 as against Rs 6,847.57 crore during the same period in the previous year, registering a decline of 2.1%.

Profit before tax stood at Rs 2,880.06 crore in Q4 FY22, down by 32.5% from Rs 4,268.15 crore in Q4 FY21. Total expenditure soared 56% to Rs 4, 155 crore in Q4 FY22 over Q4 FY21.

EBITDA slumped 30% to Rs 3,017 crore in Q4 FY22 from Rs 4,330 crore recorded in the corresponding period last year. EBITDA margin declined to 45% in quarter ended March 2022 from 63% posted in the year ago period. Net profit margin stood at 27% in Q4 FY22 as against 41% recorded in Q4 FY21

On the operational front, iron ore production rose 13% to 138.59 lakh tones in Q4 FY22 from 123.08 lakh tones reported in Q4 FY21. Iron ore sales grew 11% to 122.85 lakh tones in fourth quarter as compared to 110.91 lakh tones posted in the same period last year.

Average sales realisation slipped 13% year on year to Rs 5,364 per ton in Q4 FY22 from 6,138 per ton recorded in the corresponding quarter previous year.

On full year basis, the company recorded 50.3% rise in net profit to Rs 9,398.48 crore on a 68.4% surge in net sales to Rs 25,881.73 crore in FY22 over FY21.

In a separate exchange filing, on 25 May 2022, the state-run firm intimated the bourses regarding decline in prices of both, lump iron ore and iron fines, with immediate effect from 25 May 2022

The prices of lump ore (65.5%, 6-40 mm) have reduced by Rs 600 or nearly 10% to Rs 5,500 per ton compared with Rs 6,100 per ton fixed on 30 April 2022. Meanwhile, the prices of iron ore fines (64%, - 10 mm) slashed by Rs 750 or 14.5% to Rs 4,410 per ton from Rs 5,160 per ton set on 30 April 2022.

NMDC is India's single largest iron ore producer, presently producing about 35 million tonnes of iron ore from 3 fully mechanized mines, two located in Chhattisgarh and one in Karnataka. As of 31 March 2022, the Government of India held 60.79% stake in the firm.

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