NMDC (526371) Q4 02/03 earnings summary

Executive summary

• FY 2002-03 set records in iron ore excavation, ROM production, lump and fines output, and sales; diamond production also reached a record 84,348 carats. The annual performance received an “Excellent” MoU rating for the ninth consecutive year.

• Profit before tax reached a record Rs 420.18 crore, up 22.17% YoY; a 30% dividend was recommended, versus 25% last year.

Financial highlights

• Sales were Rs 121,422.62 lakh in FY 2002-03, versus Rs 113,004.52 lakh in FY 2001-02; profit before tax was Rs 42,017.93 lakh, versus Rs 34,394.10 lakh.

• Profit after tax was Rs 31,220.42 lakh, versus Rs 25,654.55 lakh; EPS was Rs 23.60, versus Rs 19.38.

• Other income was Rs 9,715.24 lakh, including Rs 4,931.67 lakh interest on bank deposits; prior-year other income included Rs 1,029.87 lakh interest received from RINL on delayed payments.

Outlook and guidance

• Kumaraswamy iron ore project, estimated at Rs 294 crore, was approved by the Board in April 2003; existing Donimalai infrastructure was to be used to lower costs and improve profitability.

• The Nagarnar iron and steel plant, estimated at Rs 298.68 crore, was expected to complete by end-August 2005; site levelling, plant tenders, power and railway arrangements remained in progress.

• Bailadila 11/B planning advanced as a replacement for Deposit 14, expected to be exhausted by 2006-07; further gold exploration in Tanzania was planned to assess the identified vein’s viability.

• A 300 TPA demonstration plant for carbon-free sponge iron powder was proposed; the future plan also included sodium silicate and precipitated silica development from kimberlite waste.