NMDC Steel Aims to Achieve Robust Steel Volumes in FY24

SEATTLE (Scrap Monster): NMDC Steel –a subsidiary of NMDC Limited has set a target of 1 million tonne of steel volume during the current financial year.

According to Amitava Mukherjee, Chairman and Managing Director, NMDC, the company aims to achieve bulk of production during the first half of FY24 itself. The ambitious target is despite logistics challenges associated with purchase of lime for steel production. The production target will set the path towards profitability, which it believes is gradual. It expects to reach a break-even point at a sales volume of approximately 2 million tonnes, he added.

The company is likely to register dip in operational costs, driven by current pricing trends and rising production volumes. It expects to maintain an EBITDA margin of around 40% with minor variation. The total volumes by the parent company NMDC in the fiscal year 2024 is projected at around 47-49 million tonnes.

Mukherjee acknowledged that the NMDC Steel disinvestment plan has received significant interest, with several bids received. It is currently finalising the share purchase agreement. The disinvestment process will proceed upon finalisation of the agreement. The present debt of the company is around INR 5,000 crore, he added.