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Informist, Tuesday, Jan. 7, 2025

 

--Source: NMDC likely to miss 50 mln tn iron ore sales aim for FY25 by 8-10%

--Source: NMDC FY25 sales volume seen at 45-46 mln tn

 

By Narayana Krishna

 

HYDERABAD - Hit by lower demand, logistics problems, and monsoon disruptions, public-sector iron ore major NMDC Ltd. is likely to miss its 50 million tonne sales volume target for the financial year 2024-25 (Apr-Mar) by 8-10%, a source told Informist. Considering current demand trends, the company is likely to achieve sales of 45-46 million tonnes during the current fiscal, the source said.

 

On a cumulative basis, NMDC reported a sales volume of 31.80 million tonnes for Apr-Dec, compared to 31.94 million tonnes a year ago. For Oct-Dec, NMDC produced 13.29 million tonnes of iron ore and sold 11.94 million tonnes.

 

During the last financial year, the company sold 44.48 million tonnes, slightly below its target of 45 million tonnes. In the Jan-Mar quarter of FY24, the company sold 12.54 million tonnes.

 

To achieve the 50-million-tonne target in FY25, the company will have to sell 18.2 million tonnes in the March quarter--a tough task given the current demand environment, the source explained.

 

NMDC has been striving to reach 50 million tonnes of iron ore sales for the past few years but has not achieved it for reasons such as monsoon-related production disruptions, labour unrest, rake shortages, and lower demand in the steel sector. The absence of exports has also been a significant factor in the Navratna company's repeated misses, the source added.

 

"We have crossed the monsoon slowdown and price downturn with steady performance. The production of iron ore continued to grow, and this progress, in the face of structural and cyclical volatilities of the sector, solidified our role in shaping the prospects of India's mining industry," the company said in its monthly sales and production volume update.

 

"As we continue to balance our production and expansion aspirations, the stakes for Q4 are considerably high. This performance has bolstered our confidence and reinforced our resolve to achieve new milestones in FY25," NMDC added.

 

The company has an ambitious target of reaching 100 million tonnes in iron ore production and sales volumes within the next five years by expanding capacity. At 1315 IST, shares of NMDC were trading at INR 66.08 on the National Stock Exchange, up 1.8% from its previous close.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Rajeev Pai

 

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