NMDC

The PSU iron ore maker did not exactly post a trailblazing performance for Q4FY13 but it is sure to be remembered for its jaw dropping dividend of 700% or Rs.7/share on Re1 face value share for FY13, the highest ever paid in its history. Last fiscal, in FY12, the total dividend paid was Rs.4.50/share.  In terms of performance, it achieved a record production and sales of iron ore for the quarter at 9.57 MT and 8.24 MT respectively representing an increase of 37.5% and 28% respectively (YoY). Net sales was up 23% at Rs.3202 crore. But a 129% rise in operating expenses, led by employee cost, payment of royalty and cess and selling expenses including freight out dented the net profit, which came in at Rs.1465 crore, down 11% (YoY) but up 13% (QoQ). The performance for FY13 was not too encouraging, with net revenue down 5% at Rs.10704 crore and net profit came in lower at Rs.6342 crore, down 13%. Numbers for FY13 were affected mainly due to incessant rainfall as well as low off-take of iron ore by customers and evacuation problems in the Bailadila region during the 2nd and 3rd quarter of the year.

NMDC, as part of its forward integration programme and value addition, is setting up a 3 MTPA steel plant at Nagarnar in Chhattisgarh, for which most of the major packages have been finalized and awarded. So far, cumulative orders worth Rs.13,475 crore have already been placed and expenditure of over Rs.2,346 crore has already been incurred. Work on some of the packages have already started and the project is expected to be completed by 2015-16.  The capital expenditure incurred during the year under various schemes is Rs.1607.24 crore. For the year 2013-14, an expenditure of Rs.2720 crore is planned to be expended. The company has not given any targets for FY14 but by FY15, it hopes to produce 48 MT of iron ore. The Govt of India holds 80% stake in the company. Compared to the other mining stocks, which seem to be stuck in a rut due to the mining scam, this stock continues to enjoy investor fancy due to its huge reserves, which as at end of Q3FY13 stands at Rs.27,114 crore and cash stood at Rs.21,026 crore.