NMDC Shares Drop Up to 3% After Underwhelming Q4 Profit; Revenue Beats Estimates

NMDC shares slipped into the red after the company posted a weaker-than-expected consolidated net profit for the March quarter. The stock declined as much as 3% to hit an intraday low of Rs 70.65 on the National Stock Exchange, despite a nearly 5% year-on-year increase in net profit, as the results fell short of Street estimates.

Although the state-owned iron ore company reported a near 5% on-year growth its consolidated net profit for the period, it missed the Street’s expectations. However, the company did manage to outperform the estimates on the revenue front, registering an 8% on-year growth during the said period.

Lower tax expenses and royalty and other levies, compared to the base quarter, aided the company’s earnings during the quarter under review. Meanwhile, a 2% on-year fall in average sales realisation hurt the company’s net for the period. Its total sales volume for the March quarter was 126.68 lakh tonnes, while its output volume stood at 133.07 lakh tonnes.

The company’s board of directors has recommended a final dividend of Rs 1 per share for the financial year ended March 2025. This final dividend is in addition to the interim dividend of Rs 2.30 per share already declared and paid during the year.

The on-year growth recorded in the company’s revenue was mainly driven by a robust performance of its pellets and other mineral segment, while the iron segment, which accounts for a significant portion of the total revenue, witnessed an on-year decline in revenue for the quarter under review. For the full FY25, NMDC’s consolidated net profit grew over 17% on year, and its revenue grew over 12% on year.

The stock has fallen 18% over the last one year but has risen 11% in the last one month. However, so far in 2025, the stock has given returns to the tune of 10%. Currently, shares of NMDC are 22% below their 52-week high, while 21% higher than their 52-week low level.