NMDC Limited

Amitava Mukherjee

DIRECTOR (FINANCE)

Vishal Chand Ak

MOTILAL Osw AL FINANCIAL SERVICES LIMITED

47 million

a very good year. Going forward, we believe that from 42 this year we should be able to make46 to 47 million tonne we are planning to do that. So, in the com ing year, let us see how the prices sustain the

10,000 crore

of decli ne that we've seen in prices even this year if you see, when the top line grew by around 10,000 crores around 4000 crores were quantity driven. 4 16 8 crores was quantity driven which is the most com

4000 crore

e seen in prices even this year if you see, when the top line grew by around 10,000 crores around 4000 crores were quantity driven. 4 16 8 crores was quantity driven which is the most comfortable thing for

8 crore

see, when the top line grew by around 10,000 crores around 4000 crores were quantity driven. 4 16 8 crores was quantity driven which is the most comfortable thing for us to know. Also see from Q4 to Q4 a

1 crore

or us to know. Also see from Q4 to Q4 although the prices had come down and we had lost around 76 1 crores based on prices but, the increased quantities actually helped us to earn 1248 crores more. So, w

1248 crore

lost around 76 1 crores based on prices but, the increased quantities actually helped us to earn 1248 crores more. So, we will have to depend more on now the volume increase, the top line based on volume i

33%

to know your thoughts sir. Amitava Mukherjee: There arc two things. So, far as the increase of 33% to 50% on all grades, it does not impact NMDC directly because we were not exporting we were not

50%

w your thoughts sir. Amitava Mukherjee: There arc two things. So, far as the increase of 33% to 50% on all grades, it does not impact NMDC directly because we were not exporting we were not in the

4 million

f the exports were low grade fil es and not high grade files, high grade files was less than 3 or 4 million tonne, I was in fact just going through in the morning and the data that I was given was that hig

1.4 million

I was given was that high grad e files wh en we exported 46 mi llion tonne from 62 to 65 was only 1.4 million tonne and last year when we excluded 15.26 million tonne high grade fi les were 62 million tonne.

15.26 million

xported 46 mi llion tonne from 62 to 65 was only 1.4 million tonne and last year when we excluded 15.26 million tonne high grade fi les were 62 million tonne. Now, 58 so most of it were below 58 and some betwe

62 million

only 1.4 million tonne and last year when we excluded 15.26 million tonne high grade fi les were 62 million tonne. Now, 58 so most of it were below 58 and some between 58 to 60. Now, as you know that in In

“Going forward, we believe that from 42 this year we should be able to make46 to 47 million tonne we are planning to do that.”

“So, 58 will not necessarily as per my understanding effect the market of 64 because had beneficiation faci lities been avai lable, then of course, you can say that 58 that will not be exported will be diverted to Indian market and consumed in the Indian market.”

“So, that will be a windfall game straight away adding to our PAT as and when we get it, but that will require not only the dismantling of Monitoring Committee, but actually Supreme Court order.”

“Sir my question is with regard to the demerger, so we were told that the next update with regard to it wou ld be around July and when will the plant be commissioned and when can we expect some further updates on it?”

“So, this will be held and once that is held and passed by both the creditors and creditors only above one crores have been asked by MCA to be there for electronic voting and registration.”

“So, after that, these are carried through in both the creditors forum and in the shareholders will be going back to the MCA and thereafter it should take around once the orders are passed by the government of India, then we need to file it back with the stock exchanges.”

“As a result, of course that there will be a lack of availability of n itrogen and as you know that this coke oven is to be dry cooled, dry quenching has to be done with ni trogen.”

“So, once that is ready, that should take another 10, 15 days to come to Nagarnar and get reinstalled and then we' ll have a steady source of nitrogen but to that extent, so far, because we will be doing three months of coke pushing to bui ld the coke stock so that we can light up the blast fu rnace, it will take at least two mo nths.”

“Yo u j ust know mentioned that next year our production could reach to someth ing around 46 to 47 mill ion tonnes.”

“So, in this, how much wil l be the 64% and how much will be the lower grade?”

Amitava Mukherjee

40

Moderator

13

Saket Kapoor

11

Rajesh Bhandari

9

Amitava M ukherjee

7

Amitava Mukherj ee

5

Ritesh Shah

5

Amit Dixit

4

Kirtan Mehta

4

Vishal Chandak

3

Vishal Chandak

Thank you very much Neerav. Good morning, everyone and welcome to the Q4 FY22 Earnings Call of NM DC Limited. I would like to thank the management of NMDC for providing us with this opportunity to host them for this call. As we all 101ow, it's a critical juncture and the government has announced various measures, which obviously the management of NM DC would be discussing. So, we have with us Mr. Amitava Mukherjee - Director (Finance) and he would be joining with the CMD very soon. So, without much ado, over to you Mr. Amitava sir.

Am itava Mukherjee

Good morning everybody. So, this has been a great year for NMDC 1 believe the results arc unprecedented in the history of NMDC. Even the Q4 production and d ispatches were the highest ever. If we take the financials for the entire year, they are also the best ever. And it has been a very, very good year despite the fact that we spent around 5084 1,;rurt:s against the additional royalty that had to be given because of the MMDR act. So, despite all those we have managed to record the highest revenue with just 26600 in tenn s entire top line and our revenue from operations of (+25800). So, as the profitabi lity has also increased so overall it has been a very good year. Going forward, we believe that from 42 this year we should be able to make46 to 47 million tonne we are planning to do that. So, in the com ing year, let us see how the prices sustain the recent downtrend in prices. But let us see how the situation develops, but we are confident that our volume increases would compensate a

Mod erator

Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Prashanth from Dolat Capital. Please go ahead. • ({'1({4i1'1! ~ NMDC Limited

Prashanth Ku mar Kota

Sir in light to the recent duties announced by the honorable FM 'sand the Government of India and right sizable in tenns of 30 to 50 from iron ore and 0 to 45 on pellets. Sir. now they arc doing their pat1 to control inflation or to lower their infrastructure bill or whatever it is and et cetera to help the poor but as a company, we need to do something to protect our margin so that the impact is the least on this. So , from this point onwards if something radically even as a indust1y as a company and also as industry we need to do to protect our pricing and our marg ins also. So, just wanted to know your thought process on th is, because other commodity like if you see I 0, 15, 20 and is not expected, but then they manage prices so well across market even if there is oversupply in vmious pockets, the map sizing is held up really good. So, something even we shou ld radically do different to protect our prices, just wanted to know your thoughts sir.

Amitava Mukherjee

There arc two things. So, far as the increase of 33% to 50% on all grades, it does not impact NMDC directly because we were not exporting we were not in the export market. And to that extent, so far strictly as NMDC is concerned it is of academic interest only. What it of course does is that it increases the flow of low grade files if you see the last two years data, most of the exports were low grade fil es and not high grade files, high grade files was less than 3 or 4 million tonne, I was in fact just going through in the morning and the data that I was given was that high grad e files wh en we exported 46 mi llion tonne from 62 to 65 was only 1.4 million tonne and last year when we excluded 15.26 million tonne high grade fi les were 62 million tonne. Now, 58 so most of it were below 58 and some between 58 to 60. Now, as you know that in India there is not much beneficiation facility that is operational, some of us have it installed, but it is not operational. So, 58 will not necess

Prashanth Ku mar Kota

Understood. Sir a small follow up, the recent price cut that we have taken is it, you mean to say this got nothing to do with the announcement that is generally market driven which was fire, 15 day Jag something. The Chinese crises falling, etc., o r this got somethi ng to do with the government action also, that force the market to take this higher cuts?