NMDC (526371) Q4 06/07 earnings summary

Executive summary

• FY06/07 turnover reached ₹4,185.84 crore, up 13% YoY; PBT rose 26% to ₹3,498.31 crore and net profit was ₹2,320.21 crore.

• Record lump and fines output was 271.77 lakh tonnes; domestic iron ore sales rose 19% to 223.28 lakh tonnes as exports fell 46% under Government directives.

• Total dividend was 352%, or ₹465.19 crore; ₹89 crore was earmarked for current-year CSR activities.

Financial highlights

• Turnover was ₹4,185.84 crore versus ₹3,710.92 crore in FY05/06; PBT was ₹3,498.31 crore versus ₹2,770.13 crore.

• Net profit after tax was ₹2,320.21 crore, up from ₹1,827.80 crore; EPS was ₹175.56 versus ₹138.30.

• Cash profit was ₹3,580.87 crore; net worth increased 45% to ₹5,774.13 crore and book value per share rose 45% to ₹436.91.

• Operating cash flow was ₹2,052.19 crore; cash and bank balances closed at ₹4,849.17 crore, up from ₹3,109.46 crore.

• Interim dividends totaled 267%; total FY06/07 dividend was 352%, or ₹465.19 crore, including proposed dividend and tax.

Outlook and guidance

• Deposit 11/B development began in January 2007, with approved investment of ₹295.89 crore; Kumaraswamy project was estimated at ₹296.03 crore, pending tree-felling permission.

• Deposit 13 was progressing through a joint venture with CMDC; the shareholder and JV agreement was signed on 30 March 2007, with mining lease transfer and JV formation to follow.

• A 4-million-tonne-per-year integrated steel plant in Chhattisgarh was planned with SAIL and RINL; the MoU was signed on 17 August 2007.

• Tanzania gold exploration advanced to RC drilling; further prospecting licences were sought, while a Lesotho subsidiary was planned for prospective mineral properties.

• The Nagarnar steel plant technology offers failed pre-qualification; Fastmelt and testing of Bailadila slimes were being evaluated as alternatives.