India: NMDC eyes 60-mnt iron ore production in FY’27

• FY’25 production guidance remains intact
• Kumaraswamy EC to rise to 8.91 mnt next yr

NMDC, India’s largest iron ore producer, has announced its Q3FY’25 (October-December, 2024) results. Expected production in FY’25 will be around 53 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, the miner projects iron ore production to reach 60 Mnt in FY’27.

Performance highlights:

• Iron ore production increase 60% q-o-q: The miner recorded iron ore output at 13.29 mnt in Q3FY’25, a significant increase of 60% q-o-q as against 8.28 mnt in Q2FY’25.
• Sales up 23% q-o-q: NMDC’s total iron ore sales volume rose 23% q-o-q to 11.94 mnt compared to 9.73 mnt in Q2FY’25.
• Average sales realisation rises: The miner’s average sales realisation stood at INR 5,361/t in the quarter under review, an increase of 10% y-o-y from INR 4,852/t in Q2FY’25.
• EBIDTA increases 55% q-o-q: The company’s EBIDTA was recorded at INR 2,783 crore in Q3FY’25, up against INR 1,801 crore in the previous quarter.
• PAT rises 53% q-o-q: NMDC’s profit after tax (PAT) rose by 53% y-o-y to INR 1,944 crore in Q3FY’25 compared to INR 1,269 crore in Q2FY’25.

Highlights from investors’ call:

• 2-mtpa pellet plant by CY’24, expansion pending: The 2-mtpa pellet plant is scheduled to be commissioned by the end of CY’24. Expansion to 6 mtpa is planned, depending upon market conditions and necessary approvals.
• No immediate impact due to new investments: NMDC expects no immediate impact from the new INR 1 lakh crore private sector investments in Gadchiroli for a steel plant and mining.