NMDC (526371) Q4 03/04 earnings summary

Executive summary

• FY03/04 delivered record PBT of Rs.616.02 crore, up 46.61% YoY; net profit was Rs.432.63 crore and iron ore sales reached a record 20.66 million WMT.

• Board recommended a 35% dividend of Rs.46.25 crore, versus 30% last year, and transferred Rs.380 crore to general reserve.

Financial highlights

• Revenue from sales and services was Rs.1,453.69 crore versus Rs.1,214.23 crore; PBT was Rs.616.02 crore versus Rs.420.18 crore.

• Net profit was Rs.432.63 crore versus Rs.312.21 crore; EPS increased to Rs.32.74 from Rs.23.60.

• Operating cash flow was Rs.439.67 crore; net cash increased Rs.375.24 crore to Rs.1,091.61 crore.

• Production-unit sales rose to Rs.1,448.85 crore from Rs.1,209.58 crore; unit profit increased to Rs.618.07 crore from Rs.417.89 crore.

Outlook and guidance

• Bailadila 11B development was accelerated to address higher iron ore demand; detailed project report work and plans for contract-based semi-mechanized mining were underway.

• Kumaraswamy was being developed as a replacement mine for Donimalai at an estimated Rs.294 crore; Karnataka mining-lease renewal and forest and environmental clearances remained pending.

• Nagarnar steel plant package offers were under review; Romelt technology supplier TPE agreed to revise its offer, which was awaited.

• Synthetic-rutile project work sought long-term customer commitments; Ishihara indicated potential purchases of 10,000 tonnes annually subject to product specifications.