Quarterly Results: NMDC Ltd

Technical View: 

NMDC Ltd ended at Rs 126.55, down 2.05 points or 1.59 per cent from its previous close of Rs 128.6 on the BSE.
The scrip opened at Rs 129.9 and touched a high and low of Rs 129.9 and Rs 126, respectively. A total of 3799769 (NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.

Standalone Results Q2FY17:

NMDC Ltd reported its Q2FY17 standalone results, beating all our estimates. The company's revenue for the period was 15 per cent higher than our estimate of Rs 1512 crore. Its EBITDA for the quarter beat our estimate of Rs 658 crore by 25.4 per cent. Also, the net profit came in 21.4 per cent higher than our estimate of Rs 635 crore.

The company reported a revenue growth of 8.5 per cent YoY to Rs 1,739 crore with iron ore segment reporting a 14.4 per cent YoY increase in revenue. 

However, the company showed a YoY degrowth at the EBITDA and net profit levels.

The company's EBITDA for the quarter was 8.7 per cent YoY lower at Rs 825 crore with EBITDA margin shrinking 895 bps to 47.4 per cent. This was primarily due to the higher selling expenses, including freight outs and other expenses combined with the negative impact of the adjustment for changes in inventories for finished goods. 

Also, net profit dropped 5.6 per cent YoY to Rs 771 crore.