NMDC LTD Announces Quarterly Results (1QFY20); Net Profit Up 20.9%

Tue, 27 Aug

NMDC LTD has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

NMDC LTD Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-18*	3 Mar-19*	3 Jun-19*	QoQ Change	YoY Change
Net Sales	Rs m	24,220	36,433	32,637	-10.4%	34.8%
Other income	Rs m	1,251	1,961	1,228	-37.4%	-1.9%
Turnover	Rs m	25,471	38,394	33,866	-11.8%	33.0%
Expenses	Rs m	9,981	15,510	13,969	-9.9%	40.0%
Gross profit	Rs m	14,239	20,923	18,668	-10.8%	31.1%
Depreciation	Rs m	616	804	648	-19.4%	5.2%
Interest	Rs m	108	102	117	14.6%	8.5%
Profit before tax	Rs m	14,767	21,978	19,132	-12.9%	29.6%
Tax	Rs m	5,013	7,438	7,337	-1.4%	46.4%
Profit after tax	Rs m	9,753	14,539	11,794	-18.9%	20.9%
Gross profit margin	%	58.8	57.4	57.2
Effective tax rate	%	33.9	33.8	38.4
Net profit margin	%	38.3	37.9	34.8

Year-on-Year Performance:

• The company's operating income during the quarter grew 34.8% on a year-on-year (YoY) basis. The expenses were up by 40.0% YoY during the same period.
• The company's operating profit increased by 31.1% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 57.2% in 1QFY20 as against 58.8% in 1QFY19.
• Depreciation charges increased by 5.2% and finance costs increased by 8.5% YoY, respectively.
• Other income declined by 1.9% YoY during the quarter.
• Net profit for the quarter increased by 20.9% YoY. Net profit margins during the quarter declined from 38.3% in 1QFY19 to 34.8% in 1QFY20.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 10.4% on a quarter-on-quarter (QoQ) basis. The expenses were down by 9.9% QoQ during the same period.
• The company's operating profit declined by 10.8% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 57.2% in 1QFY20 as against 57.4% in 4QFY19.
• Net profit for the quarter declined by 18.9% QoQ, while net profit margins declined from 37.9% in 4QFY19 to 34.8% in 1QFY20.

To see how NMDC LTD has performed over the last eight quarters,please visit here.

NMDC LTD Share Price Performance

Over the last one year,NMDC LTD share price has moved down from Rs 107.7 to Rs 79.5, registering a Loss of Rs 28.2 or around 26.1%.

Overall, the S&P BSE SENSEX is down 2.6% over the year.

Current Valuations

At the current price of Rs 79.5, the price to earnings (P/E) ratio of NMDC LTD stands at 6.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.3 times.