NMDC Steel (NSLNISP) Q4 23/24 earnings summary

Executive summary

• Commercial operations began on 31 Aug 2023; FY24 production included 4.94 lakh tonnes of HR coils and revenue from operations of ₹3,048.99 crore, with a net loss of ₹1,560.32 crore.

• Operations were still ramping up at year-end: upstream units exceeded 50% utilization by Mar 2024, while the finished-steel mill was near 40%, driving low fixed-cost absorption and operating losses.

Financial highlights

• From 31 Aug 2023 to 31 Mar 2024, total income was ₹3,168.28 crore, including ₹3,048.99 crore revenue from operations and ₹119.29 crore other income.

• Total expenses were ₹5,369.30 crore; loss before tax was ₹2,201.02 crore and net loss was ₹1,560.32 crore, after a ₹650.06 crore deferred-tax benefit; EPS was -₹5.32.

• HR coil sales were 3.52 lakh tonnes, generating ₹1,731.10 crore; other sales of ₹1,317.89 crore included pig iron, by-products and other products.

• Capital expenditure was ₹1,226 crore; raw-material consumption was ₹3,846.15 crore, including coal at ₹2,644.65 crore and iron ore at ₹915.98 crore.

Outlook and guidance

• Management targeted monthly output of 2.1 lakh tonnes of hot metal and 1.5 lakh tonnes of HR coils, with these levels expected in Q3 FY25; current HR coil production near 1.25 lakh tonnes/month was marginally below monthly break-even.

• Forward strategy targets 1.6–1.8 lakh tonnes/month of crude steel and 5,000 tonnes/day of HRC; break-even was targeted by H2 FY25, while a CRISIL assessment expected EBITDA break-even within H1 FY25.

• Priorities include resolving lime and logistics constraints, infrastructure upgrades, efficiency, sustainability, automation, digitization and expanding markets and customer segments.