NMDC Steel has delivered an exceptional third-quarter performance, showcasing significant revenue growth alongside substantial improvement in loss reduction and a remarkable EBITDA turnaround compared to the same period last year. The steel manufacturer's latest quarterly results indicate robust operational recovery with strong improvements across all key financial metrics.

Financial Performance Overview

The company's Q3 financial metrics demonstrate impressive improvement across key parameters:

EBITDA Turnaround Achievement

The most significant highlight of the quarter was NMDC Steel's remarkable EBITDA turnaround, achieving a positive EBITDA of ₹975 million compared to a substantial loss of ₹6.56 billion in the corresponding quarter of the previous year. This represents a complete operational transformation, with the company achieving an EBITDA margin of 3.24%, marking its entry into positive territory from deeply negative margins in the previous year.

Revenue Growth and Loss Reduction

NMDC Steel achieved remarkable revenue growth of 41.51%, with quarterly revenue increasing to ₹30.00 billion from ₹21.20 billion in the corresponding quarter of the previous year. Simultaneously, the company achieved a significant 68.42% reduction in net losses, narrowing from ₹7.60 billion to ₹2.40 billion year-on-year. This dual achievement reflects improved market demand, enhanced operational capacity, and effective business execution strategies.

Operational Excellence and Market Position

The combined performance of strong revenue growth, substantial loss reduction, and positive EBITDA generation positions NMDC Steel favorably within the steel industry landscape. The company's ability to expand its revenue base while simultaneously improving its profitability metrics and achieving positive operational cash generation indicates robust operational leverage and enhanced business efficiency, setting a strong foundation for sustained performance improvement.

Newmalayalam Steel , now known as NMDC Steel Ltd., has reported a loss of Rs 115 crore in the second quarter, a significant shift from its profit of Rs 25.6 crore in the first quarter. Despite this setback, the company saw a slight increase in revenue and achieved a production milestone.

Financial Highlights

Quarterly Performance

NMDC Steel's revenue increased by 0.7% year-on-year to Rs 3,390.00 crore for the quarter ended September. However, the company's operating earnings fell significantly by 50.4% year-on-year to Rs 417.00 crore, with the EBITDA margin contracting to 6.1%.

Production Milestone

Despite the financial challenges, NMDC Steel achieved a notable milestone by producing 2 million tonnes of hot metal in the current financial year. This represents a 100% increase compared to the 966,468 tonnes produced in the previous fiscal year.

Market Response

Following the earnings announcement, NMDC Steel's shares experienced a sharp decline:

• Shares fell as much as 6.88% to Rs 44.39
• Closed 6.36% lower at Rs 44.64

Stock Performance

• Over the last 12 months: Declined 1.22%
• Year-to-date: Gained 3.59%

The company's transition from a profit in the first quarter to a loss in the second quarter, coupled with the significant drop in operating earnings, has clearly impacted investor sentiment. However, the production milestone achieved by NMDC Steel suggests operational improvements, which may influence future performance.

Investors and analysts will likely monitor NMDC Steel's ability to return to profitability and capitalize on its increased production capacity in the coming quarters.