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Shares of the country’s largest iron ore producer, National Mineral Development Corporation (NMDC), dropped over 4 percent on Tuesday after its quarterly results failed to meet market expectations.

The company reported an EBITDA margin of 25.6 percent for the September quarter, lower than the market expectation of 30.9 percent.

The company’s EBITDA also dropped by 60 percent to Rs 1,280 crore from a record high of Rs 3,203 crore in the year-ago quarter.

Also Read: Corporate Affairs Ministry gives nod for NMDC steel business demerger

NMDC also reported a 62 percent decline in its net profit at Rs 885 crore as its average sales realisation per tonne halved due to lower iron ore prices.

The company's revenue fell by 51 percent to Rs 3,328 crore from Rs 6,793 crore in the year-ago quarter.

Also Read: NMDC keeps prices of Lump Ore & Fines unchanged for the third straight month

The Navratna company under the Ministry of Steel reported a 19 percent decline in iron ore production at 71.08 lakh tonnes from 87.70 lakh tonnes in the same period a year ago.

Iron ore sales also declined by 6 percent to 84.32 lakh tonnes from 89.85 lakh tonnes in the year-ago quarter.

Also Read: NMDC shares jump despite a 13 percent drop in October sales

Average iron ore prices declined by 49 percent to Rs 3,016 per tonne.

The company also announced that an amount of Rs. 58.54 crores is provided towards expected credit loss (ECL) and included in other expenses.

Brokerage firm Citi downgraded NMDC to sell with a price target of Rs 100 saying that it struggles to find upside triggers for the stock until the government withdraws the export duty.

The stock ended at Rs 108.95, down 4.05 percent on Tuesday.

Also Read: NMDC's Nagarnar Steel plant commissions first coke over battery

(Edited by : Rukmani Krishna)

First Published:Nov 15, 2022 3:53 PM IST