NMDC (526371) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 achieved record iron ore production of 132.91 LT, surpassing previous quarters and marking a 9% year-over-year increase, with sales up 5% to 119.36 LT.

• Revenue from operations for Q3 FY25 rose 21% year-over-year to ₹6,531 crore, and profit after tax increased 30% to ₹1,944 crore.

• 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 revenue from operations: ₹6,531 crore, up 21% year-over-year; EBITDA before exceptional items: ₹2,783 crore, up 18%; PAT: ₹1,944 crore, up 30%.

• Standalone Q3 FY25 EBITDA margin: ~39% (EBITDA: ₹2,630.70 crore on revenue of ₹6,530.82 crore).

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

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

• 9M FY25 revenue from operations: ₹16,715 crore, up 13% year-over-year; PAT: ₹5,196 crore, up 25%.

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 growth, but actual results may differ due to market and operational risks.