NMDC (526371) Q4 97/98 earnings summary

Executive summary

• FY97/98 delivered record iron ore excavation, production and dispatches; iron ore dispatches reached 156.30 lakh tonnes despite sluggish steel-market conditions.

• Profit before tax was Rs.216.67 crore and net profit was Rs.175.01 crore; a 25% dividend was recommended for the second consecutive year.

Financial highlights

• Sales were Rs.757.69 crore versus Rs.649.40 crore; total income was Rs.807.24 crore versus Rs.731.73 crore.

• PBT rose to Rs.216.67 crore from Rs.169.78 crore; PAT increased to Rs.175.01 crore from Rs.129.99 crore.

• Net worth reached Rs.717.08 crore in the Directors’ Report; CAG review reported Rs.697.99 crore, reflecting a difference in reported basis.

• Cash from operating activities was Rs.97.55 crore; cash and cash equivalents ended the year at Rs.221.12 crore.

Outlook and guidance

• Steel-industry recovery was expected to lift iron ore demand; operations were being geared for higher domestic and export requirements.

• Bailadila Deposits 10 and 11A, budgeted at Rs.430.50 crore, were projected for completion by February 2001 after an estimated 20-month delay linked to statutory clearances.

• Deposit 10 and 11A commissioning over the following two years was expected to support domestic supply and maintain a significant international presence.

• Panna diamond capacity was planned to expand to about 84,000 carats annually, with Rs.24.57 crore of fresh investment and a 24-month implementation period from February 1998.