Volume rebound, moderate valuation positive for mining major NMDC

NMDC spent Rs 400 crore on capex in Q1 against the annual target of Rs 2,200 crore for FY25

Iron ore mining major NMDC’s results for the April-June quarter (Q1) of FY25 were better than estimates. Weak volumes were balanced off by higher realisations, better average selling price (ASP) and lower royalties which boosted bottomline.

The revenue was in line with estimates at Rs 5,400 crore, flat year-on-year (Y-o-Y) and down 17 per cent quarter-on-quarter (Q-o-Q). The sequential decline was primarily due to weak volumes. Iron ore production stood at 9.19 million tonnes (mt), down 14 per cent Y-o-Y and down 31 per cent Q-o-Q, while sales were 10.1mt, down 8 per cent Y-o-Y and down