NMDC (526371) Q4 16/17 earnings summary

Executive summary

• FY17 iron-ore production reached a record 340.05 lakh tonnes and sales 356.21 lakh tonnes; turnover rose 37% YoY to ₹8,830 crore.

• PBT from continuing operations increased 5% to ₹4,294 crore, while PAT fell 4.5% to ₹2,589 crore; net worth declined 22.66%, mainly reflecting the share buyback.

Financial highlights

• Revenue from operations was ₹8,829.64 crore vs ₹6,457.27 crore; iron-ore sales were ₹8,708.90 crore vs ₹6,327.93 crore.

• EBITDA rose to ₹4,509.86 crore from ₹4,374.21 crore; PBT was ₹4,293.68 crore vs ₹4,092.76 crore and PAT ₹2,589.14 crore vs ₹2,712.22 crore.

• Iron-ore sales volume increased 23.52% YoY to 356.21 lakh tonnes; domestic sales rose 18.68% and exports through MMTC 142.36%.

Outlook and guidance

• Revised capacity targets are 50 MTPA by FY19 and 67 MTPA by FY22, following a review of the earlier plan amid weaker commodity-market conditions.

• Growth plans prioritize brownfield mine expansion and evacuation capacity; a 3 MTPA Nagarnar steel plant and pellet projects support forward integration.

• Construction targets for Nagarnar steel plant were completion by Dec 2017, followed by progressive commissioning.