NMDC (526371) Q4 98/99 earnings summary

Executive summary

• Difficult year amid weak domestic and international steel markets; lower iron ore offtake constrained production, yet overall performance earned a “Very Good” MoU rating.

• Diamond production and tuff treatment reached all-time highs; a 25% dividend was recommended for the third consecutive year.

Financial highlights

• Sales ₹72,523.31 lakh vs ₹75,768.89 lakh; profit before tax ₹17,199.07 lakh vs ₹21,666.90 lakh.

• Profit after tax ₹14,040.20 lakh vs ₹17,501.31 lakh; EPS ₹11.03 vs ₹13.24.

• Dividend proposed at 25%, or ₹3,303.93 lakh; dividend tax provision ₹363.43 lakh.

• Sales turnover including services was ₹72,819.48 lakh; other income was ₹4,872.75 lakh, including ₹2,535.44 lakh interest on bank deposits.

Outlook and guidance

• Steel-sector recovery was expected within two to three years; expansion of iron ore capacity, new projects and diversification were intended to position operations for the upturn.

• Panna diamond mine capacity expansion was on schedule for completion by February 2001; UPFO plant was expected to start commercial production by September 1999 after trial runs.

• Bailadila 10 & 11A commissioning depended on Supreme Court clearance for tree felling; construction was estimated at 33 months after approval.

• Romelt pig iron project capital cost was ₹298.68 crore; a proposed ₹40 crore Technology Development Board loan was under consideration.