NMDC Q3 profit likely to jump 25%

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NMDC Q3 profit likely to jump 25%

NMDC, a state-controlled mineral producer, is expected to report a profit after tax of Rs 1,895.33 crore in the third quarter of FY12, a growth of 25% as compared to Rs 1,518 crore in a year ago quarter.

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NMDC , a state-controlled mineral producer, is expected to report a profit after tax of Rs 1,895.33 crore in the third quarter of FY12, a growth of 25% as compared to Rs 1,518 crore in a year ago quarter.

Revenues are seen going up by 11% to Rs 2,897.5 crore from Rs 2,621.2 crore year-on-year.

EBITDA is likely to go up 15% to Rs 2,320.4 crore from Rs 2,015.9 crore during the same period.

EBITDA is expected to be at 80.1% in the October-December quarter of FY12 versus 76.9% in the corresponding quarter of last fiscal and 79.5% in the previous quarter.

On quarter-on-quarter basis, revenues are seen going down 5.4%, EBITDA seen down 4.7% and PAT is likely to fall 3.5%.

Factors at play:

- NMDC is likely to report a strong performance on the back of steady volumes and higher realizations

- Expect them to post higher volume on the back of the ongoing mining controversy at the Karnataka region

- NMDC has benefitted as it is the sole provider at the Karnataka region to bridge the demand supply gap and was able to command higher realization for iron ore

- On sequential basis, its performance is likely to remain subdued due to lower volume
* 2QFY12 volume was higher than usual due to additional iron ore sales from its Karnataka mine in the wake of the Supreme Court's order to restart closed iron ore mines, but 3QFY12 volume remained lower than normal as the company was only allowed to sell its produce in Karnataka through the e-auction route

- Realizations: Likely to be higher by 9% QoQ as the company had undertaken around 10% price hike at the beginning of 3QFY12

- PAT: Also need to watch their other income which boasts PAT by roughly Rs 500 crore but likely to reduce owing to various acquisitions