NMDC’s results for the third quarter of the fiscal year 2024 exceeded expectations. The company maintained its target volume for the fiscal year 2024 at 47 million tonnes, compared to the 36.5 million tonnes reported between April and January. Since October 2023, NMDC has raised iron ore prices by more than 15%.
In the December 2023 quarter, both production and sales volumes increased, and iron ore prices rose by 13%, resulting in a 35% revenue growth. Higher revenues and operational efficiency led to an increase in both EBITDA (earnings before interest, taxes, depreciation, and amortization) and EBITDA per tonne. Net profit also increased due to higher EBITDA, additional income, and lower depreciation.NMDC’s capital expenditure plan for the fiscal year 2024 is approximately Rs 2400 crore, of which Rs 2300 crore has already been spent. For the fiscal year 2025, NMDC plans to spend between Rs 2000-2100 crore on capital expenditure.
The construction of the slurry pipeline is progressing well, and the pellets plant is expected to be expanded from 2 million tonnes to 6 million tonnes by the end of fiscal year 2025. The gold mining project in Australia has commenced, and the management anticipates reaching a production capacity of 1 million tonnes within the next 12-15 months.