NMDC Steel (NSLNISP) Q4 22/23 earnings summary

Executive summary

• FY2022-23 was a pre-commercial year; the Nagarnar 3.0 MTPA integrated steel plant remained in commissioning, and no profit or loss was reported.

• Commissioning advanced across coke ovens, sinter and oxygen units; trial production of hot-rolled coils began on 30 June 2023.

Financial highlights

• Revenue from operations was nil in FY2022-23; construction-related salaries, materials, operations and other costs were capitalized as incidental expenditure during construction.

• CWIP was ₹19,545.23 crore at 31 March 2023, including ₹3,342.97 crore of incidental expenditure during construction; prior-year CWIP was ₹17,038.18 crore.

• Total assets were ₹25,568.21 crore and total equity ₹17,048.58 crore at 31 March 2023; total liabilities were ₹8,519.63 crore.

• Cash and cash equivalents closed at ₹621.14 crore, versus ₹0.82 crore in the restated prior year.

Outlook and guidance

• Commercial operations were expected to begin in Q2 FY2023-24; the outlook targeted operation at 56% of annual capacity over a 12-month period, equivalent to 42% for the remaining nine months after commercial production begins.

• MECON was engaged for commissioning and subsequent O&M; management planned efforts to raise capacity utilization from the start of operations.

• Planned output includes HR plates and sheets, API-5L products, HR coils, high-carbon, silicon and automotive steel.