NMDC (526371) Q4 22/23 earnings summary

Executive summary

• FY23 iron ore output was 40.82 MT and sales 38.22 MT; revenue from operations fell 32% YoY to ₹17,667 crore as sales volumes and realization declined.

• Reported PBT was ₹7,637 crore and PAT ₹5,529 crore; ₹1,237 crore of exceptional income included monitoring-committee receipts and the NINL divestment gain.

• Net worth rose 25% to ₹22,332 crore; FY23 marked a second consecutive year with iron ore production above 40 MT.

Financial highlights

• Revenue from operations was ₹17,666.88 crore vs ₹25,964.79 crore YoY; iron ore sales revenue was ₹17,447.39 crore vs ₹25,629.72 crore.

• PBT before exceptional items was ₹6,400.25 crore vs ₹13,023.36 crore; reported PBT was ₹7,637.52 crore, including ₹1,237.27 crore exceptional income.

• PAT was ₹5,528.63 crore vs ₹9,447.59 crore; EBITDA was ₹8,048.16 crore vs ₹13,349.27 crore; EPS was ₹18.86 vs ₹32.24.

• Iron ore sales volume declined 6.02% YoY to 38.22 MT; sales realization fell 27.52% to ₹4,565/tonne from ₹6,298/tonne.

• Capital expenditure was ₹3,747 crore, including ₹2,283 crore for the Nagarnar steel plant; net worth increased 24.93% YoY to ₹22,332 crore.

Outlook and guidance

• Iron ore capacity targets are 67 MTPA by FY26 and 100 MTPA by FY30, supported by brownfield expansion and evacuation infrastructure.

• Tokisud North coal operations were planned to start in FY24; Rohne operations were targeted within the following 2–3 years.

• Phase 1 of the Bacheli–Nagarnar slurry pipeline, ore processing plant and pellet plant was expected to complete in FY26; the pipeline system is designed for 15 MTPA.

• Management emphasized cost competitiveness amid subdued iron ore prices and continued automation and digitization to improve operating efficiency.