India: NMDC eyes around 53-55 mnt of iron ore output in FY'25
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NMDC, India's largest iron ore producer, recently announced its October-December, 2023 (Q3FY24) results. Notably, the mining major reported its best-ever third-quarter iron ore production in Q3FY24.
Expected production in FY25 will be around 53-55 million tonnes (mnt) as against the current volume of 46-47 mnt which will be achieved via enhancement of its Kumaraswamy mines in Karnataka and incremental volumes from Chhattisgarh's deposit No. 5.
Performance highlights:
- Iron ore production up over 35% q-o-q: The miner recorded iron ore output at 12.22 mnt in Q3FY24, a rise of 38% q-o-q as against 8.85 mnt in Q2FY24.
- Iron ore sales up 19% q-o-q: NMDC's total iron ore sales volume increased 19% q-o-q to 11.39 mnt when compared to 9.57 mnt in Q2FY24. The entire quantity of 11.39 mnt was sold in the domestic market.
- Average sales realisation rises: The miner's average sales realisation stood at INR 4,679/t in the quarter under review, an increase of 13% q-o-q from INR 4,146/t in Q2FY24
- EBIDTA increases by 56% q-o-q: The company's EBIDTA was recorded at INR 2,366 crore in Q3FY24, rising significantly as against INR 1,514 crore in the previous quarter.
- PAT rises 45% q-o-q: NMDC's profit after tax (PAT) rose significantly by 45% q-o-q to INR 1,492 crore in Q3FY24 compared to INR 1,028 crore in Q2FY24.
Highlights of the investors' call:
- No immediate plans to enter export market: The miner stated that they are in no mood to enter the export market, the major reason being that their majority of the raw material is of higher grade which currently attracts 30% export duty and they are receiving comparatively higher realisations in the domestic market.
- Nagarnar pellet plant enhancement: NMDC plans to enhance the capacity of its pellet plant in Nagarnar to 6 mnt from 2 mnt previously.
- Beneficiation plant commissioning in Bacheli, Chhattisgarh: The leading iron ore miner plans to commission a beneficiation plant by FY25.
