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NMDC Ltd Annual Report 2023

May 23, 2023

61742_rns_2023-05-23_436d32cb-eafd-4437-ba55-4567ef00e55d.pdf

Annual Report

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Digitally signed by AKELLA SRI PARDHA SARADHI DN: c=IN, o=Personal, postalCode=500013, st=Telangana, serialNumber=2193E7BFC19F2AA5 7C7A4FC9EC0D8541B0D616CF306 9307E193EC28508FF4BCF, cn=AKELLA SRI PARDHA SARADHI Date: 2023.05.23 19:52:44 +05'30'

AKELLA SRI PARDHA SARADHI

NMDC Limited Financial Results FY 2022-23

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23.05.2023

Disclaimer

  • This presentation is issued by NMDC Limited (the “ Company ”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefor. This presentation does not solicit any action based on the material contained herein. Nothing in this presentation is intended by the Company to be construed as legal, accounting or tax advice.

  • This presentation has been prepared by the Company based upon information available in the public domain. This presentation has not been approved and will not or may not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India. This presentation may include statements which may constitute forward-looking statements. The actual results could differ materially from those projected in any such forward-looking statements because of various factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise.

  • This presentation contains certain forward-looking statements relating to the business, financial performance, strategy and results of the Company and/or the industry in which it operates. Forward-looking statements are statements concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this presentation are based on numerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person's officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this Presentation or the actual occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward looking statements are based.

  • The information contained in these materials has not been independently verified. None of the Company, its Directors, Promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this document or its contents or otherwise in connection with this document, and makes no representation or warranty, express or implied, for the contents of this document including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this document or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. Past performance is not a guide for future performance. The information contained in this presentation is current, and if not stated otherwise, made as of the date of this presentation. The Company undertake no obligation to update or revise any information in this presentation as a result of new information, future events or otherwise. Any person/ party intending to provide finance/ invest in the shares/ businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision.

  • This presentation is strictly confidential and may not be copied or disseminated, in whole or in part, and in any manner or for any purpose. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and if given or made, such information or representation must not be relied upon as having been authorized by any person. Failure to comply with this restriction may constitute a violation of the applicable securities laws. This presentation is not intended for distribution or publication in the United States. Neither this document nor any part or copy of it may be distributed, directly or indirectly, in the United States. The distribution of this document in certain jurisdictions may be restricted by law and persons in to whose possession this presentation comes should inform themselves about and observe any such restrictions. By reviewing this presentation, you agree to be bound by the foregoing limitations. You further represent and agree that (i) you are located outside the United States and you are permitted under the laws of your jurisdiction to receive this presentation or (ii) you are located in the United States and are a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of 1933, as amended (the “ Securities Act ”).

  • This presentation is not an offer to sell or a solicitation of any offer to buy the securities of the Company in the United States or in any other jurisdiction where such offer or sale would be unlawful. Securities may not be offered, sold, resold, pledged, delivered, distributed or transferred, directly or indirectly, in to or within the United States absent registration under the Securities Act, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. The Company’s securities have not been and will not be registered under the Securities Act.

2

Best ever (Q4 v/s Q4 CPLY) Physical Performance in FY23

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141.26
Best Ever
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2% Production (LT) CPLY : 138.59 LT (second Best)

Production (LT)

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124.10
Best Ever
0.17%
Sales (LT)
CPLY : 123.89 LT
(second Best)
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3

(Q4 v/s Q4 CPLY) Financial Performance in FY23

5 851INR Cr ,

2 153 INR Cr ,

4 663 INR /T ,

(CPLY: 6,785 INR Cr- Best Ever)

Revenue from Operations 14%

(CPLY: 3,059 INR Cr )

EBITDA 30%

(CPLY: 5,386 INR/T - Best Ever) Average Sales Realization 13%

2 048 INR Cr ,

(CPLY: 2,922 INR Cr)

PBT before exceptional 30% income

3 285 INR Cr ,

(CPLY: 2,922 INR Cr) PBT after exceptional 12% income

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2 [nd]
Best
2 277 INR Cr
,
(CPLY: 1,862 INR Cr )
PAT 22%
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4

13022

Performance in FY23

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13022
421.88 6300
408.17
3% -126%28% 41%
4565 51% 7637
6399
Avg. Sales
PBT
Production Realization PBT
(LT) 2 [nd] Best (INR/T) (INR Crore) before exceptional income (INR Crore) after exceptional income
Best ever
406.68 25965 9448
382.23
32% 41%
6%
17667
5529
Revenue from
PAT
Sales Operations
2 [nd] Best (INR Crore)
(LT) (INR Crore)
Best ever 2 [nd] Best
Best ever
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9448
41%
5529
PAT
(INR Crore)
FY’23
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FY’22

5

Financials Rs. Crore

Performance of FY23 v/s FY22


Particulars

2022-23
2021-22
(Re-stated)
Variance (%)
Iron Ore Production (LT) 408.17 421.88 (13.71) (3%)
Iron Ore Sales (LT) 382.23 406.68 (24.45) (6%)
- Export Sales (LT)
- Domestic Sales (LT)
-
382.23
-
406.68
-
(24.45)
-
(6%)
Average Domestic Realisation (Rs./T) 4,565 6,300 (1,735) (28%)
Iron ore Sales 17,447 25,630 (8,183) (32%)
Revenue from Operations 17,667 25,965 (8,298) (32%)
Interest Income 420 306 114 37%
Other Income 328 413 (85) (21%)
Total Income 18,415 26,683 (8,268) (31%)
Royalty & Other Levy 3,754 4,902 (1,148) (23%)
Additional Royalty 3,971 5,084 (1,113) (22%)
Operational Expenses 4,787 4,833 (46) (1%)
Stock Adjustment# (497) (1,159) 662 (57%)
Total Expenses 12,015 13,661 (1,646) (12%)
EBITDA & Margin (%) before exceptional income 6,810 (39%) 13,348 (51%) (6,538) (49%)
Profit Before Tax before exceptional income 6,399 13,022 (6,623) (51%)
Exceptional Income (*) 1,237 - 1,237 100%
Profit Before Tax after exceptional income 7,637 13,022 (5,385) (41%)
Profit After Tax 5,529 9,448 (3,919) (41%)

6

Financials Rs. Crore

Per ormance o FY2 v s FY22 f f 3 (Q4) / (Q4)

Particulars 2022-23
(Q4)
2021-22 (Q4)
(Re-stated)
Variance (%)
Iron Ore Production (LT) 141.26 138.59 2.67 2%
Iron Ore Sales (LT) 124.10 123.89 0.21 0%
- Export Sales (LT)
- Domestic Sales (LT)
-
124.10
-
123.89
-
0.21
-
0%
Average Domestic Realisation (Rs./T) 4,663 5,386 (723) (13%)
Iron ore Sales 5,787 6,672 (885) (13%)
Revenue from Operations 5,851 6,785 (934) (14%)
Interest Income 109 79 30 38%
Other Income * (121) 254 (375) (148%)
Total Income 5,839 7,118 (1,279) (18%)
Royalty & Other Levy 1,228 1,317 (89) (7%)
Additional Royalty** 1,396 1,384 12 1%
Operational Expenses# 1,592 1,878 (286) (15%)
Stock Adjustment (425) (383) (42) 11%
Total Expenses 3,791 4,196 (405) (10%)
EBITDA & Margin (%) before exceptional income 2,153 (37%) 3,059 (45%) (906) (30%)
Profit Before Tax before exceptional income 2,048 2,922 (874) (30%)
Exceptional Income 1,237 - 1237 100%
Profit Before Tax after exceptional income 3,285 2,922 363 12%
Profit After Tax 2,277 1,862 415 22%

7

Financials Rs. Crore

Per ormance o FY2 v s FY2 f f 3 (Q4) / 3 (Q3)

Particulars 2022-23 (Q4) 2022-23 (Q3) Variance (%)
Iron Ore Production (LT) 141.26 106.63 34.63 32%
Iron Ore Sales (LT) 124.10 95.80 28.3 30%
- Export Sales (LT)
- Domestic Sales (LT)
-
124.10
-
95.80
-
28.3
-
30%
Average Domestic Realisation (Rs./T) 4,663 3,821 842 22%
Iron ore Sales 5,787 3,661 2,126 58%
Revenue from Operations 5,851 3,720 2,131 57%
Interest Income 109 125 (16) (13%)
Other Income (121) 63 (184) (292%)
Total Income 5,839 3,908 1,931 49%
Royalty & Other Levy 1,228 905 323 36%
Additional Royalty 1,396 964 432 45%
Operational Expenses# 1,592 1,113 479 43%
Stock Adjustment (425) (292) (133) 46%
Total Expenses 3,791 2,690 1,101 41%
EBITDA & Margin (%) 2,153 (37%) 1,331 (36%) 822 62%
Profit Before Tax before exceptional income 2,048 1,217 831 68%
Exceptional Income 1,237 - 1237 100%
Profit Before Tax after exceptional income 3,285 1,217 2,068 170%
Profit After Tax 2,277 890 1,387 156%

8

Quarterly Iron Ore Production Trend

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160.00
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140.00 141.26
138.59
120.00
106.49 106.63
100.00
89.10 89.20
87.70
80.00
71.08
60.00
40.00
20.00
0.00
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2021-22 2022-23
KDL 32.16 32.18 40.51 49.30 35.69 23.93 35.91 50.17
BCH 27.14 26.21 37.99 54.54 32.88 18.71 40.14 52.94
DIOM 12.95 13.31 11.26 16.10 8.68 14.18 15.44 18.97
KIOM 16.86 15.99 16.74 18.64 11.95 14.26 15.14 19.18
TOTAL 89.10 87.70 106.49 138.59 89.20 71.08 106.63 141.26 9
Qty in LT
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Quarterly Iron Ore Sales Trend

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140.00
123.90 124.10
120.00
98.45
100.00 94.49 95.80
89.85
84.32
78.01
80.00
60.00
Qty in LT
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40.00 40.00
20.00
0.00
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2021-22 2022-23
KDL 38.86 30.80 36.49 41.74 34.37 30.17 34.31 43.19
BCH 30.35 31.88 36.94 44.37 27.67 22.29 32.71 42.15
DIOM 13.31 13.00 10.67 16.25 8.90 14.88 15.60 18.23
KIOM 11.97 14.17 14.34 21.53 7.07 16.99 13.17 20.54
TOTAL 94.49 89.85 98.45 123.90 78.01 84.32 95.80 124.10

10

Average Basic Domestic Price of Iron Ore (Overall)

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8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2021-22 2022-23
LUMP 7,271 7,109 5,834 5,252 5,687 3,878 3,840 4,525
FINES 4,986 5,435 4,240 3,994 4,321 2,614 2,605 3,440
AVG 5,733 5,954 4,752 4,455 4,768 3,016 3,000 3,780
Rs /T
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LUMP FINES AVG

11

Details T 2 Shareholders as on 1- -2 of op 5 3 03 3

Sl.
No.
Shareholder No. of Shares % Holding
1 PRESIDENTOF INDIA 1781633571 60.79
2 LIFE INSURANCE CORPORATIONOF INDIA 337784217 11.53
3 ADITYA BIRLASUN LIFE TRUSTEE PRIVATE LIMITED A/CADITYA BIRLASUN LIFESPECIALOPPORTUNITIESFUND 29241439 1
4 PARAGPARIKH FLEXI CAP FUND 28211811 0.96
5 ICICI PRUDENTIAL MIDCAP FUND 16061237 0.55
6 VANGUARD EMERGINGMARKETS STOCK INDEX FUND,ASERIES OF VANGUARD INTERNATIONAL EQUITY INDEX FUNDS 15388891 0.53
7 VANGUARD TOTAL INTERNATIONALSTOCK INDEX FUND 15145635 0.52
8 SBI LARGE&MIDCAP FUND 13248628 0.45
9 CANARA BANK-MUMBAI 11069767 0.38
10 MIRAE ASSET EMERGINGBLUECHIP FUND 9919544 0.34
11 EDELWEISSTRUSTEESHIPCOLTD AC- EDELWEISSMF AC-EDELWEISSBALANCED ADVANTAGE FUND 9868081 0.34
12 KOTAK EQUITY ARBITRAGE FUND 8706093 0.3
13 THE NEW INDIA ASSURANCECOMPANY LIMITED 8418144 0.29
14 BARODA BNP PARIBASBALANCED ADVANTAGE FUND 8349500 0.28
15 LSV EMERGINGMARKETSEQUITY FUND LP 8184300 0.28
16 MIRAEASSET MIDCAP FUND 8000000 0.27
17 NIPPONLIFEINDIA TRUSTEE LTD-A/C NIPPON INDIA GROWTH FUND 7901187 0.27
18 BNP PARIBAS ARBITRAGE 7774186 0.27
19 VANGUARDFIDUCIARY TRUST COMPANY INSTITUTIONALTOTALINTERNATIONALSTOCK MARKET INDEX TRUST II 6989971 0.24
20 INDIANBANK 6500000 0.22
21 ABUDHABI INVESTMENT AUTHORITY-XENON 5937351 0.2
22 DREAMDUOLLP 5875900 0.2
23 EDGBASTON ASIANEQUITY TRUST 5778718 0.2
24 NPS TRUST-A/CLIC PENSION FUNDSCHEME -CENTRALGOVT 5448080 0.19
25 BANK OF INDIA 4898396 0.17
TOTAL 2366334647 80.77

12

Major Investment in Subsidiaries, JVs & Associates

JKMDC (*) 95.86%

KVSL (100%) Rs. 0.10 cr

NCL (51%), BRPL (52%) NCF Rs. 98.35 cr, Rs. 152.67 cr, Rs 2 cr.

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Krishnapatnam Rly Co. Ltd (6.40%) Rs. 40.0 cr

ICVL (25.94%), Rs. 378.86 cr Legacy Iron Ore (90.02%), Rs. 214.7 cr

(*) Investment derated

Total Investments - Rs. 886.72 crore

Map is for general reference purpose only

13

Chhattisgarh Mega Steel Ltd – Rs 0.01 cr, JNMDC – Rs 0.01 cr, Investment in co-operative society – Rs 0.02 cr

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Thank you
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NMDC Mines India Shines

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#Ispati Irada