India: NMDC's iron ore production drops in Q1FY'25, FY'25 guidance remains unchanged

• Production guidance at 53-55 mnt in FY'25
  
  
• No retrospective effect of SC mineral tax order
  
  

NMDC, India's largest iron ore producer, has announced its Q1FY'25 (April-June, 2024) results. Expected production in FY'25 will be around 53-55 million tonnes (mnt) which will be achieved via enhancement of its Kumaraswamy mines in Karnataka and incremental volumes from Chhattisgarh's deposit No. 5.

Meanwhile, FY'26 production guidance also stands at around 54 mnt.

Performance highlights:

• Iron ore production drops 14% y-o-y: The miner recorded iron ore output at 9.18 mnt in Q1FY'25, a fall of 14% y-o-y as against 10.7 mnt in Q1FY'24.
  
  
• Sales down 8% y-o-y: NMDC's total iron ore sales volumes decreased 8% y-o-y to 10.07 mnt compared to 10.97 mnt in Q1FY'24. The entire quantity of 10.07 mnt was sold in the domestic market.
  
  
• Average sales realisation rises: The miner's average sales realisation stood at INR 5,304/t in the quarter under review, an increase of 9% y-o-y from INR 4,850/t in Q1FY'24.
  
  
• EBIDTA increases 20% y-o-y: The company's EBIDTA was recorded at INR 2,725 crore in Q1FY'25, up as against INR 2,276 crore in the year-ago period.
  
  
• PAT rises 20% y-o-y: NMDC's profit after tax (PAT) rose by 20% y-o-y to INR 1,984 crore in Q1FY'25 compared to INR 1,650 crore in Q1FY'24.
  
  

Highlights from investors' call:

• Temporary halt to Nagarnar pellet plant work: Expansion of the miner's Nagarnar pellet plant has been stopped temporarily over some financial issues, as per company officials.
  
  
• Bacheli beneficiation plant commissioning on hold : The miner had earlier announced its plan to commission a beneficiation plant at Bacheli, Chhattisgarh, by FY'25. Officials said that the commissioning of the plant has been suspended till further notice due to some commercial issues. The company is in negotiations with contractors.