We have been producing over 40 MTPA of iron for the past two fiscals and all our CAPEX plans are structured around improving the efficiencies of our mine plants and the wellbeing of our manpower

An Interview with - Amitava Mukherjee Chairman and Managing Director, NMDC Limited

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In Q4FY23, the company’s net profit increased by 22.27 per cent on YoY basis while the net sales dipped by 13.76 per cent on QoQ basis. What were the factors which contributed to the company’s performance? 

The 22.27 per cent upswing in NMDC’s net profit in the fourth quarter of FY23 as compared to CPLY was an outcome of exceptional income. NMDC earned ₹1,237 crore of exceptional income in Q4. A key factor that contributed to this income is the receipt of ₹957 crore from the monitoring committee towards 10 per cent withheld amount from January 1, 2019 to March 31, 2022. The strategic disinvestment of NINL brought another ₹279.6 crore to our profit sum. The dip in sales came from a decrease in average sales realisation by 13 per cent on QoQ basis. NMDC’s strategic management and a strong core cushioned the drop in sales during Q4 and ensured the delivery of a steady performance.

How do you see iron ore prices going ahead with the opening up of the Chinese economy and overall mild recession that we may expect in FY24?

We are optimistic about the iron ore prices in India. Even though the demand for steel is sluggish at the moment and the steel makers are believed to be maintaining a lean inventory of iron ore and coal, we think the situation would improve in the coming months on the back of restocking of raw material coupled with improved demand. The strong capital outlay by the government and robust private investments will drive the demand from major sectors like railway, real estate, infrastructure and capital goods. The iron ore prices in the international market had been range-bound between USD 120-130 through Q1 and early Q2 of CY23.