National Mineral Development Corporation (NMDC) came out with its Q1 FY19 results on 8th August 2018. The result has beaten street's expectations. Analysts had expected the profit to dip on YoY basis.
The company reported a net profit of Rs 975.33 crore for the quarter of Q1 FY19 which is a growth of 0.6% over the PAT of Rs 969.26 crore reported for quarter ending 30th June 2017.
Even though the revenue from operations dipped significantly (-14%), still the company has managed to do well to maintain a healthy bottom line.
One of the main reasons for the sales to go down is the refusal of Jindal Steel and Power to buy ore from NMDC. Jindal Steel has been pressurizing the company to reduce the price of iron ore.
NMDC could maintain a good bottom line due to decline in expenses (less royalty and transportation cost).
The basic EPS stood at Rs 3.08.
Standalone results for the quarter April-June 2018 (except for EPS, all the othet numbers are in Rs crores)
Segment wise breakup of Revenue and Profit Before Tax (PBT)
The Iron Ore segment has been little sluggish due to reduced offtake by Jindal Steel, even Pellet offtake was affected due to the refusal of Karnataka based steel companies to buy from Donimalai.
Pellet and Diamond segments reported higher losses during this quarter.
The result can be accessed from BSE's