NMDC Iron Ore Output Grows 10% in FY24

New Delhi, Sep 24 (PTI) NMDC posted "best-ever yearly performance" in FY24 with iron ore production rising 10 per cent to cross 45 million tonnes and sales going up 16 per cent to touch 44.48 million tonnes mark, the company's CMD Amitava Mukherjee said on Tuesday.

The nation has witnessed strong growth of 7 per cent year-on-year in iron ore output, with production increasing from 257 million tonnes in FY23 to an impressive 275 million tonnes in FY24, the CMD said while addressing NMDC's 66th Annual General Meeting (AGM).

"I am delighted to share that NMDC has played a significant role in this achievement, securing a commendable 16 per cent market share. FY24, NMDC registered its best ever yearly physical performance as it produced 45.02 million tonnes and sold 44.48 million tonnes of iron ore," he said.

The company recorded a 10 per cent growth in production and 16 per cent growth in sales compared to FY23 volumes, Mukherjee said.

The performance translated into a strong financial performance earning a revenue of Rs 21,294 crore in FY24, a 21 per cent increase from the revenue generated in FY23.

"Our financial planning and pricing mechanisms led to a profit after tax (PAT) of Rs 5,632 crore and profit before tax (PBT), before exceptional item, of Rs 8,294 crore in FY24, realizing an upswing of 2 per cent in PAT and 30 per cent in PBT over CPLY," he said.

For FY24, NMDC's EBITDA stood at Rs 8,709 crore, representing a 28 per cent growth from the previous financial year. The company's operating profit margin in 2023-24 was 34 per cent.

The company's highest-ever capital expenditure of Rs 2,066 crore was expended towards capacity building in FY24, which was 17 per cent north of the capex target of Rs 1,769 crore.

NMDC's standalone net worth (post the demerger of Nagarnar Steel Plant) crossed the Rs 25,000-crore mark in FY24 reinforcing the company's financial stability and its capacity to invest in growth and generate value for stakeholders.

The global iron ore production reached 2.5 billion tonnes in the calendar year 2023, with Australia and Brazil leading as the top producers, contributing approximately 56 per cent of the total output.

India, the fourth largest producer, along with China, both contributed about 11 per cent each to global iron ore production.