Q3 2024 NMDC Ltd Earnings Call Transcript
Key Points
- NMDC Ltd (BOM:526371) reported a 19% increase in production and a 24% increase in sales over the nine-month period.
- The company achieved a 25% turnover growth, which was entirely volume-driven.
- January was the best month ever for NMDC Ltd (BOM:526371), with strong performance continuing into February.
- The company has significant expansion plans, targeting 50-51 million tonnes of production next year, with potential to reach 53 million tonnes.
- NMDC Ltd (BOM:526371) has a strong cash position with INR 11,500 crore, sufficient to fund its CapEx plans for the next two to three years without raising additional capital.
- The Kumaraswamy enhancements have not yet come through, potentially impacting the ability to reach the 47 million tonnes target.
- There are constraints in terms of Environmental Clearance (EC) limits, which could delay production increases.
- The NMDC Steel plant is still in the process of stabilizing operations and has not yet reached profitability.
- The company faces logistical challenges and higher costs compared to peers, impacting price realization.
- NMDC Ltd (BOM:526371) had to pay a significant penalty of INR 252 crore for historical forest clearance issues, impacting Q3 financials.
Ladies and gentlemen, good day, and welcome to National Mineral Development Corporation Limited Q3 FY24 earnings conference call hosted by ICICI Securities. (Operator instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Amit Dixit from ICICI Securities. Thank you, and over to you, sir.
Thanks, Rhea. Good morning, everyone, and thanks for joining the call today. At the outset, I would like to thank the NMDC management for giving the opportunity to host this call. From the management, we have today, Amitava Mukherjee, Chairman, Managing Director, Additional Charge, and Director Finance.
Without much ado, I would invite Mr. Mukherjee for opening remarks. Post which, we will open the floor for an interactive Q&A session. Over to you sir.
Good morning and thank you for joining. I hope I'm audible and clear.
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