NMDC Announces Quarterly Results (1QFY22); Net Profit Up 500.1%

Mon, 16 Aug

NMDC has announced its results for the quarter ended June 2021. Here is a detailed performance review of the same:

NMDC Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-20*	3 Mar-21*	3 Jun-21*	QoQ Change	YoY Change
Net Sales	Rs m	19,375	68,476	65,122	-4.9%	236.1%
Other income	Rs m	718	852	1,441	69.2%	100.8%
Turnover	Rs m	20,093	69,328	66,563	-4.0%	231.3%
Expenses	Rs m	11,841	26,073	23,360	-10.4%	97.3%
Gross profit	Rs m	7,534	42,403	41,762	-1.5%	454.3%
Depreciation	Rs m	574	569	553	-2.8%	-3.6%
Interest	Rs m	93	41	30	-27.4%	-67.8%
Profit before tax	Rs m	7,585	42,644	42,620	-0.1%	461.9%
Tax	Rs m	2,267	14,306	10,705	-25.2%	372.3%
Profit after tax	Rs m	5,318	28,338	31,915	12.6%	500.1%
Gross profit margin	%	38.9	61.9	64.1
Effective tax rate	%	29.9	33.5	25.1
Net profit margin	%	26.5	40.9	47.9

Year-on-Year Performance:

• The company's operating income during the quarter grew 236.1% on a year-on-year (YoY) basis. The expenses were up by 97.3% YoY during the same period.
• The company's operating profit increased by 454.3% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 64.1% in 1QFY22 as against 38.9% in 1QFY21.
• Depreciation charges declined by 3.6% and finance costs declined by 67.8% YoY, respectively.
• Other income increased by 100.8% YoY during the quarter.
• Net profit for the quarter increased by 500.1% YoY. Net profit margins during the quarter increased from 26.5% in 1QFY21 to 47.9% in 1QFY22.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 4.9% on a quarter-on-quarter (QoQ) basis. The expenses were down by 10.4% QoQ during the same period.
• The company's operating profit declined by 1.5% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 64.1% in 1QFY22 as against 61.9% in 4QFY21.
• Net profit for the quarter increased by 12.6% QoQ, while net profit margins increased from 40.9% in 4QFY21 to 47.9% in 1QFY22.

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

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NMDC Share Price Performance

Over the last one year, NMDC share price has moved up from Rs 93.1 to Rs 172.3, registering a Gain of Rs 79.2 or around 85.1%.

Overall, the S&P BSE SENSEX is up 44.8% over the year.

Current Valuations

At the current price of Rs 172.3, the price to earnings (P/E) ratio of NMDC stands at 5.7 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.8 times.