Like other metals companies, India’s largest iron ore miner NMDC delivered good results in Q2FY22. However, profitability dipped sequentially, and expenses, such as royalty payments, soared. There is a question mark going forward about the sustainability of profit margins, since the strong steel cycle appears to have peaked, and corrected substantially in Q3FY22.
NMDC generated consolidated revenues from operations of Rs 6,793 crore in Q2FY22, which was 204 per cent rise YoY over Rs 2,229 crore in Q2FY21 and 4 per cent higher QoQ over Rs 6,512 crore in Q1FY22. It had an EBITDA of Rs 3,188 crore, which was 190 per cent higher YoY over Rs 1,098 crore and down 26 per cent QoQ versus Rs 4,313 crore. Net