India’s state-owned iron ore producer National Mineral Development Corporation’s (NMDC’s) iron ore output increased by 30pc to 12.3mn mt in Q4 FY2021 (ended March 31, 2021) from 9.5mn mt in the same quarter last year.
The company has delayed the decommissioning and demerger of its 3mn mt per annum steel plant to H2 FY’22 due to logistical issues brought on by the ongoing global pandemic. NMDC expects iron ore prices to drop by Q2 of the next financial year following weakened prices for long steel. The company has also raised its earnings guidance by 80pc for FY’22 to factor in an anticipated rise in iron ore prices in the first quarter of that year.
The company’s production has been trending upward with a corresponding 28pc rise in Q4 from 9.6mn mt in Q3.
NMDC’s sales jumped by 29pc to 11.1mn mt in Q4 FY’21 compared to 8.6mn mt during the same period last year. Sales were also up 19pc from Q3 of the same fiscal. Export sales rose by 23pc in Q4 of the fiscal in review to 820,000mt against 669,000mt in Q4 FY’20.
Domestic sales increased by 29pc to 10.2mn mt from 79.5mn mt during the same timeframe.
The average domestic realization rose by 71pc in Q4 to Rs5,941/mt ($80.05/mt) from the prior-year quarter, while sales realization increased by 67pc to Rs6,138/mt.
The company’s net profit soared by 708pc to Rs28.3bn in Q4 FY’21 compared to Rs3.5bn in the same quarter of the last fiscal. EBITDA and margin were up 183pc to Rs43.3bn and 83pc, respectively, whereas operational revenues increased by 115pc to Rs68.4bn.