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HomeMarket NewsNMDC Q3 Results: Higher expenses weigh on operating performance; New unit for critical minerals biz
The sharp drop in margins during NMDC's Q3 results, could be attributed to a 70% jump in other expenses and 65% jump in selling expenses.
State-run NMDC Ltd. reported results for the December quarter that were higher than the same quarter on the revenue front, but lower across other parameters. The operating performance also turned out to be lower than what the street was anticipating.
Revenue for the quarter grew by 16% year-on-year to ₹7,610.8 crore compared to ₹6,568 crore earlier. A CNBC-TV18 poll had projected the figure to be ₹6,850 crore. A ramp-up in the pellet business has aided the growth in topline with revenue increasing to ₹1,537 crore from ₹931 crore in the previous quarter.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter of ₹2,144.3 crore, was down 9.6% from last year and in-line with the CNBC-TV18 poll expectation of ₹2,119 crore.
EBITDA margin for the quarter narrowed to 28.2% from 36.1% last year. The figure is lower than the CNBC-TV18 poll of 30.9%. The sharp drop in margins could be attributed to a 70% jump in other expenses and 65% jump in selling expenses.
NMDC has also incorporated an arm to acquisition, exploration, production and other related activities of critical minerals.
Shares of NMDC are trading little changed after the earnings announcement, currently trading 0.2% higher at ₹81.65. The stock is up 31% in the last 12 months.
