NMDC (526371) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 achieved record iron ore production of 132.91 LT, up 9% year-over-year, and sales of 119.36 LT, with revenue from operations rising 21% to ₹6,531 crore and profit after tax up 30% to ₹1,944 crore.

• Q3 FY25 results exceeded expectations in both physical and financial performance, with production surpassing even Q4 of last year.

• CapEx for FY25 is expected at INR 4,000 crores, nearly double last year, with a long-term plan of INR 70,000 crores over 5-6 years to reach a 100 million-ton production target.

• Major vendor conference held to unveil technology and CapEx plans, receiving strong vendor engagement.

• Approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024.

Financial highlights

• Q3 FY25 EBITDA before exceptional items was ₹2,783 crore, up 18% year-over-year, with an EBITDA margin of 43%.

• Standalone Q3 FY25 revenue from operations: ₹6,530.82 crore, up from ₹5,409.90 crore YoY; standalone net profit: ₹1,943.51 crore, up from ₹1,492.32 crore YoY.

• Royalty as a percentage of realization rose to 46% this quarter, mainly due to higher production volumes.

• Finance costs increased from INR 29 crore to INR 61 crore quarter-on-quarter, attributed to higher working capital requirements.

• Net cash position as of January 31 was INR 7,696 crores.

Outlook and guidance

• Q4 volumes are expected to be 16-17 lakh tons, with January already achieving over 5 lakh tons.

• FY26 production is targeted at 52-53 million tons, and FY27 at around 60 million tons, contingent on project approvals and capacity enhancements.

• CapEx run rate will increase significantly from FY27 as the company targets 100 million tons by 2030.

• Management confident of recovering large outstanding receivables from NMDC Steel Ltd and RINL, supported by government restructuring and business tie-ups.

• Forward-looking statements indicate expectations of continued strong operational and financial performance, subject to market and regulatory risks.