NMDC Achieves Best-Ever Yearly Performance With Record Iron Ore Production

National Mineral Development Corporation posted 'best-ever yearly performance' in Fiscal 2024 with iron ore production rising 10% to cross 45 million tonnes and sales going up 16% to touch 44.48 million tonnes mark, the company's Chairman and Managing Director Amitava Mukherjee said on Tuesday.

The nation has witnessed strong growth of 7% year-on-year in iron ore output, with production increasing from 257 million tonnes in Fiscal 2023 to an impressive 275 million tonnes in Fiscal 2024, the CMD said while addressing NMDC's 66th Annual General Meeting.

"I am delighted to share that NMDC has played a significant role in this achievement, securing a commendable 16% market share. Fiscal 2024, 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% growth in production and 16% growth in sales compared to Fiscal 2023 volumes, Mukherjee said.

The performance translated into a strong financial performance earning a revenue of Rs 21,294 crore in Fiscal 2024, a 21% increase from the revenue generated in Fiscal 2023.

"Our financial planning and pricing mechanisms led to a profit after tax (PAT) of Rs 5,632 crore and profit before tax, before exceptional item, of Rs 8,294 crore in Fiscal 24, realizing an upswing of 2% in PAT and 30% in PBT over CPLY," he said.

For Fiscal 2024, NMDC's EBITDA stood at Rs 8,709 crore, representing a 28% growth from the previous financial year. The company's operating profit margin in 2023-24 was 34%.

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 Fiscal 2024 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% of the total output.

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