NMDC - Q1FY14 Result First Cut - Microsec

NMDC Ltd announced its Q1FY14 results on 7th August, 2013.

The company's Q1FY14 earnings surpassed the consensus estimates by 6.78% on topline front and 8% on EBITDA front. The company reported net sales of INR2869.1 crore, which was up by 1.10% on YoY basis due to 5.83% growth in sales volume, but was offset by 4.47% de-growth in realizations. On QoQ basis, it was down by 10.40% because of 11.46% drop in sales volumes and marginal increase in realizations. The EBITDA for the quarter was INR1905.18 crore, which was down by 17.24% on YoY basis due to increase in other expenses (INR212.49 crore in Q1FY14 vs INR94.64 crore in Q1FY13) majorly the due to selling expenditure on exports of 4.92LT in this quarter. The company registered net profit of INR1572.19 crore, which followed the pattern of fall in EBITDA and dropped by 17.51% on YoY basis.

NMDC has cut Iron Ore Lumps price (high grade iron ore) by INR200-300 per tonne to INR4200-4300 per tonne without commenting on Iron Ore fines price which are currently priced at INR2510 per tonne.

At the CMP of INR95, the stock is trading at P/E of 3.27x its TTM EPS of INR15.15 per share and EV/EBITDA of 2.38x its TTM EBITDA of INR6981.12 crore.

Source : Equity Bulls

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