{"id":156642,"date":"2023-11-24T10:25:17","date_gmt":"2023-11-24T15:25:17","guid":{"rendered":"https:\/\/44.250.171.167\/?p=156642"},"modified":"2023-11-24T10:25:19","modified_gmt":"2023-11-24T15:25:19","slug":"nmdc-limited-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/nmdc-limited-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"NMDC Limited Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from NMDC Limited (NMDC) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Production and Sales Growth<\/strong>\n<ul>\n<li>Q2 production 25% higher than last year.<\/li>\n<li>Q2 sales 14% higher than last year.<\/li>\n<li>Best ever production and sales in H1 and almost every month this year.<\/li>\n<li>On track to achieve 50 million tonne production target.<\/li>\n<li>New projects starting soon to add 4.2 million tonnes capacity.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capex Spending<\/strong>\n<ul>\n<li>40% higher capex spending versus last year.<\/li>\n<li>80% higher than proportionate target for the year.<\/li>\n<li>Capex of INR 1,008 crores in H1.<\/li>\n<li>Will exceed INR 1,600 crore capex target set for the year. To end up with INR 1,800-2,000 crores capex this fiscal.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Iron Ore Pricing and Realizations<\/strong>\n<ul>\n<li>Q2 average realization INR 4,146 per tonne, 7% higher year-on-year.<\/li>\n<li>H1 average realization grew 8% to INR 4,928 per tonne.<\/li>\n<li>Traditionally 40-45% discount to export parity price.<\/li>\n<li>Factoring taxes and transportation, domestic realization higher than export netback.<\/li>\n<li>No economic case currently for exporting iron ore.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Iron Ore Production Target<\/strong>\n<ul>\n<li>Sticking to 47-49 million tonnes target for FY2024.<\/li>\n<li>H1 production at 20 million tonnes.<\/li>\n<li>If H2 production 10% higher than last year, can reach 46-47 million tonnes.<\/li>\n<li>New projects adding 4.3 million tonnes capacity will help achieve target.<\/li>\n<\/ul>\n<\/li>\n<li><strong>NMDC Steel Divestment<\/strong>\n<ul>\n<li>No clarity currently on divestment progress.<\/li>\n<li>Elections in Chhattisgarh caused delays after initial progress.<\/li>\n<li>NMDC has provided all necessary approvals from its side.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Ongoing Projects\u2019 Status<\/strong>\n<ul>\n<li>Rapid wagon loading system to be commissioned soon, will double rake loading capacity to 4-5 rakes per day.<\/li>\n<li>Screening Plant 3 delayed due to monsoon issues, to be completed by mid 2025 now.<\/li>\n<li>Slurry pipeline project on track, pipeline laying over 70 kms done out of 113 kms.<\/li>\n<li>Pellet plant capacity to be increased from 2 to 6 million tonnes, redesign underway.<\/li>\n<li>Screening plant 2 tender to be awarded next month.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Evacuation Infrastructure Capacity<\/strong>\n<ul>\n<li>Current single railway line itself has 28 million tonne capacity.<\/li>\n<li>Doubling will take it to 35-36 million tonnes capacity.<\/li>\n<li>Constraint is rake availability, not infrastructure capacity.<\/li>\n<li>Rapid wagon loading to help increase evacuation by 2-3 million tonnes.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Pellet Plant Capacity Expansion<\/strong>\n<ul>\n<li>Existing 1.2 million tonne pellet plant at Donimalai non-operational due to lack of iron ore fines feed.<\/li>\n<li>Separate 2 million tonne pellet plant being set up near steel plant.<\/li>\n<li>Now decided to expand capacity to 6 million tonnes in modular manner.<\/li>\n<li>Will enable capacity expansion in future through plug-and-play modules.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Production Growth outlook<\/strong>\n<ul>\n<li>Max capacity next year would be 51-53 million tonnes.<\/li>\n<li>Need environment clearances for further expansion.<\/li>\n<li>Next major ramp-up to happen only after 2 years.<\/li>\n<li>FY2025 unlikely to see higher than 53 million tonnes.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capex Spending Outlook<\/strong>\n<ul>\n<li>Likely capex of INR 2,200-2,300 crores in FY2024.<\/li>\n<li>Major projects planned: INR 1,400 crores new conveyor and crushing plant and INR 1,000 crores new screening plant at Donimalai.<\/li>\n<\/ul>\n<\/li>\n<li><strong>RINL Iron Ore Supply<\/strong>\n<ul>\n<li>Supplied 3 million tonnes iron ore in H1 FY2023, 10% higher than last year.<\/li>\n<li>One of top 3 clients along with JSW Steel and AM\/NS India.<\/li>\n<li>Annual supply to RINL around 6-7 million tonnes.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Australia Mining Projects<\/strong>\n<ul>\n<li>Currently operating small 1 tonne per year gold mine.<\/li>\n<li>Have 6 other highly promising gold tenements for exploration.<\/li>\n<li>Expect substantial gold presence in Australia in next 2 years.<\/li>\n<\/ul>\n<\/li>\n<li><strong>India Mining Opportunities<\/strong>\n<ul>\n<li>Not interested in atomic minerals recently de-notified.<\/li>\n<li>Focus is on minerals like iron ore, gold, lithium, copper etc.<\/li>\n<li>Have narrowed down to 6-8 minerals of interest.<\/li>\n<li>Atomic minerals require complex processing, not core competence.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from NMDC Limited (NMDC) Q2 FY24 Earnings Concall Production and Sales Growth Q2 production 25% higher than last year. Q2 sales 14% higher than last year. Best ever production and sales in H1 and almost every month this year. On track to achieve 50 million tonne production target. New projects starting soon to [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5746,5753],"tags":[9766,10169,10157],"class_list":["post-156642","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-energy-stocks","category-industrials","tag-coal","tag-earnings","tag-iron-ore-2"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":156110,"url":"https:\/\/alphastreet.com\/india\/hindalco-industries-ltd-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":156642,"position":0},"title":"Hindalco Industries Ltd Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"November 10, 2023","format":false,"excerpt":"Key highlights from Hindalco Industries Ltd (HINDALCO) Q2 FY24 Earnings Concall Financial Performance Consolidated Q2 revenue rose 2% sequentially to INR54,169 crores. 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