NMDC Q3 Review — Margin Expansion Despite Ebitda Miss On Higher Royalty Expense; Systematix Retains 'Hold'

NMDC has also outlined a Rs 700 billion capex plan to reach the 100mt volume target by 2030; finer details of the plan remain to be shared..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.NMDC Ltd. reported Q3 FY25 Ebitda of Rs 23.7 billion (+18%/+71% YoY/QoQ), 14% below our estimate due to higher royalty payments during the quarter, in line with higher production. Iron ore production and sales volumes for the quarter came in at 13.3 mt (+8.7% YoY, +60.5% QoQ) and 11.9 mt (+4.8% YoY, +22.6% QoQ), respectively. Realisations for Q3 FY25 averaged Rs 5,501/tonne (+15.9%/+8.9% YoY/QoQ), 1% below our estimate of Rs 5,550/t. Ebitda margin for the quarter was 36.1% versus 37.1%/28.2% in Q3 FY24/Q2 FY25. Cost of production exclusive selling expenses and royalty stood at Rs 864/t (+1.0%/-48.6% YoY/QoQ). Employee costs per ton decreased to Rs 368 this quarter versus Rs 430 in Q2 FY25. NMDC implemented a price cut in January, declining lump and fines prices by 6% each to Rs 6,000/ Rs 5,060 per ton vs Rs 6,350/Rs 5,750 per ton in October 2024, respectively. The company is looking at strong volume recovery in 4Q and is confident of securing EC limit enhancements this month and next. NMDC has also outlined a Rs 700 billion capex plan to reach the 100mt volume target by 2030; finer details of the plan remain to be shared. We maintain Hold rating on the stock based on 6x FY27E EV/Ebitda. Delays in securing EC enhancement and geopolitical factors causing a downward biased movement in iron ore prices are key risks for the company..Click on the attachment to read the full report:.Varun Beverages Q4 Results Review: Motilal Oswal Reiterates 'Buy' On The Stock — Here's Why.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

NMDC Q3 Review — Margin Expansion Despite Ebitda Miss On Higher Royalty Expense; Systematix Retains 'Hold'

Systematix' target price of Rs 70/share (Rs 80/share earlier), implies an 11% upside from CMP, thereby we maintain Hold rating on the stock.

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