NMDC - Q4FY13 Result Review - Angel Broking

NMDC's 4QFY2013 profitability performance was lower-than-expected due to higher than expected increase in costs. NMDC's net sales increased by 23.4% yoy to Rs. 3,202cr (above our estimates of Rs. 2,659cr) mainly due to higher volumes which increased 28.0% yoy to 8.2MT. EBITDA however declined by 11.3% yoy to Rs. 1,750cr because of higher employee costs and other expenses. Other income was flat yoy Rs. 547cr. Consequently, net profit decreased by 10.8% yoy to Rs. 1,464cr (below our estimate of Rs. 1,721cr).

We keep our rating and target price under review.

Source : Equity Bulls

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