India: NMDC eyes 46-47 mnt iron ore output in FY'23
India’s largest iron ore producer, NMDC, recorded stellar performance in FY’22 (Apr’21-Mar’22). The company reported its best-ever iron ore pr...
India's largest iron ore producer, NMDC, recorded stellar performance in FY'22 (Apr'21-Mar'22). The company reported its best-ever iron ore production and sales in the last fiscal year. Expected production in FY'23 will be around 46-47 million tonnes (mnt) as against the current volume of 42 mnt.
Performance highlights
- Iron ore production rises 24% y-o-y: The miner recorded iron ore output at 42.18 mnt in FY'22 as against 34.15 mnt in FY'21.
- Iron ore sales up 22% y-o-y: NMDC's total iron ore sales volume increased by 22% y-o-y to 40.5 mnt in the period under review compared to 33.2 mnt in FY'21. The entire quantity of 40.5 mnt was sold in the domestic market.
- Average sales realisation rises: The miner's average sales realisation stood at INR 6,298/t in FY'22, an increase of 37% y-o-y from INR 4,581/t in FY'21.
- EBIDTA up y-o-y: The company's EBIDTA was recorded at INR 13,306 crore in FY'22, up significantly as against INR 9,146 crore in the same period last year.
- PAT rises 50% y-o-y: NMDC's profit after tax (PAT) rose sharply by 50% on the year to INR 9,398 crore in FY'22 compared to INR 6,253 crore in the year-ago period.
- Nil impact of export duty imposition: The recent imposition of hefty export duties on iron ore by the Indian government will not impact the miner as it doesn't have a presence in the export market.
- Contract/spot sales to replace e-auction in Karnataka: Henceforth, NMDC will conduct iron ore auctions in Karnataka by itself and not via the Monitoring Committee. Overturning its 2011 order of direct disposal of the accumulated iron ore through the process of e-auction conducted by the Central Enforcing Agency (CEC)-appointed Monitoring Committee, the apex court has ruled that direct contract sales and/or spot sales will replace e-auction and lifted the bar on exports of iron ore from the state.
- Nagarnar steel plant commissioning postponed: Commissioning of the 3 mnt Nagarnar steel plant started with the heating of the coke oven for three months but a sudden breakdown of the oxygen plant leading to motor burnout has postponed the commencement of operations to end-Aug-Sept, NMDC informed.