NMDC Q3 Results Preview: Profit, EBITDA likely to jump over 50% on the back of price hikes

State-run iron ore producer National Mineral Development Corporation (NMDC) is all set to report its financial results for the October-December period (Q3 FY24) on Wednesday, February 14. Analysts expect the PSU to stage a strong performance on the back of price hikes undertaken by the company during the three-month period.

According to Zee Business research, NMDC is estimated to register a standalone net profit of Rs 1,380 crore for the fiscal third quarter, an increase of 55.1 per cent compared with the corresponding period a year ago. The analysts peg growth of 38.2 per cent in the PSU’s revenue to Rs 5,142 crore for the December quarter.

The Hyderabad-headquartered iron ore company is expected to register earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 1,729 crore for the quarter ended December 31, 2023, as against Rs 1,144 crore for the year-ago period, according to the research.

Zee Business analysts estimate NMDC’s quarterly margin, a key measure of profitability, to improve to 33.6 per cent from 31 per cent a year ago.

Some analysts are even more optimistic about the state-run iron ore producer’s upcoming numbers.

Sharekhan estimates the state-run firm’s operating margin to improve to 36.2 per cent for the quarter ended December, with sales growth of 39.4 per cent to Rs 5,187 crore.

How NMDC fared in July-September period (Q2 FY24)

In November, NMDC reported a weaker-than-expected set of results for the fiscal second quarter.

Its net profit grew 15.6 per cent on a year-on-year basis to Rs 1,028 crore while revenue increased 20.6 per cent to Rs 4,014 crore for the September quarter, according to a regulatory filing.

Zee Business analysts had estimated NMDC’s second-quarter net profit at Rs 1,182 crore and revenue at Rs 4,683 crore.

NMDC shares: Past performance

As of February 13, NMDC shares have rewarded investors with a return of 96 per cent in the past year, outperforming a rise of 21 per cent in the headline Nifty50 index.

The NMDC stock rose 41.6 per cent in the third quarter of the current financial year while the benchmark index rose 10.7 per cent.

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