NMDC Q3 Preview: PAT forecasted higher by 18%

BusinessGeorge Cherian, Bloomberg UTV, YourMoneySite.

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NMDC's Q3 EBIDTA margins are forecasted at 78.4%, up 150 bps

NMDC will announce its third quarter earnings today. According to Bloomberg UTV, the company’s Q3 profit after tax (PAT) is seen at Rs 1796.3 cr vs Rs 1518.03 cr, up 18.3%, year-on-year.

For the quarter ended December 31, 2011, NMDC’s net sales is estimated at Rs 2757.1 cr vs Rs 2621.22 cr, up 5.2%, YoY. EBIDTA margins are forecasted at 78.4%, up 150 bps and EBIDTA is seen at Rs 2174 cr vs Rs 2015.9 cr, up 7.8%, YoY.

Other key highlights:

-Steady volumes, higher realisation to aid PAT, EBIDTA growth
-Realisation likely to be higher by 9.2% QoQ to Rs 4400/tonne
-Company undertook price hikes of 10% in Q3
-Quarter-on-quarter volumes (seen down 10.3%) of 6.8 MT may hit QoQ growth
-Q3 volumes hit as company was allowed to sell produce via e-auction route
-Higher volumes in Q2 over additional iron ore sales from Karnataka mine
-EBIT/tonne seen up 8.4% (YoY) to Rs 3,488

At close yesterday, the company’s stock was at Rs 174.30, down 4.68% on the BSE.