State-run iron ore miner NMDC on Friday reported 54% decline in profit after tax (PAT) for Q1FY23 at Rs 1,469 crore as its sales and average per tonne sales realisation dipped by 17% and 11% respectively from the year ago period on weak demand from steelmakers.
The company had recorded Rs 3,193 crore net profit in Q1FY22. NMDC had reported record numbers in the first quarter of last fiscal on production, sales, revenue, earnings before interests, taxes, depreciation and amortisation (EBITDA), average sales realisation and PAT.
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While production of the company was stable during the quarter at 8.9 million tonne (MT), in the first quarter its sales volume fell by 17% to 7.8 MT on weak domestic demand. The company did not export during the quarter. In the first quarter of last fiscal, NMDC had reported its highest-ever sales at 9.5 MT.
The decline in sales coupled with fall in prices, NMDC’s Q1FY23 revenue fell by 27% to Rs 4,767 crore, EBITDA fell 53% to Rs 2,046 crore. The EBITDA margin for the quarter was 43% compared with 66% a year ago.
Average price of NMDC’s iron ore was Rs 4,768 per tonne in the first quarter of the current fiscal compared with Rs 5,733 a tonne in the same period last fiscal.