NMDC’s overall Iron ore production for H1 FY14 is up by 5.31% to 12.89 MnT compared to 12.24 MnT in H1 FY13. While its sales were up by 8% to 13.75 MnT in Q2 FY14 compared to 12.72 MnT in Q2 FY13.
NMDC produced a total of 6.83 MnT Iron ore in Q2 FY14 recording a growth of 0.3% compared to 6.81 MnT in Q2 FY13. While its sales were 7.26 MnT up by 5.83% as compared to 6.86 MnT in Q2 FY13. Iron ore’s production from NMDC’s mines in Chhattisgarh was however low by 1.7% at 4.66 MnT in Q2 FY14 in comparison to 4.74 MnT produced in Q2 FY13. Whereas, its sales from Chhattisgarh was up by 2.7% at 5.03 MnT in Q2 FY14 from 4.9 MnT in Q2 FY13. NMDC produced 2.17 MnT iron ore from its Karnataka based mines with a growth record of 4.83% at 2.17 MnT in Q2 FY14 compared to 2 MnT in Q2 FY13. Iron ore sales from Karnataka in Q2 FY14 were up by 13.9% at 2.23 MnT in Q2 FY14 compared to 1.9 MnT in Q2 FY13.
NMDC’s iron ore productions for H1 FY14 from Chhattisgarh were up by 3.05% at 8.45 MnT compared to 8.2 MnT in H1 FY13. While, the sales were up by 5.9% to 9.33 MnT in H1 FY14 as compared to 8.82 MnT in FY13. NMDC’s total production for H1 FY13 from Karnataka mines were 4.44 MnT up by 9.9% from 4 MnT in H1 FY13. While the sales were 4.42 MnT in H1 FY14 up by 13.33% as compared to 3.9 MnT in H1 FY13.
According to C S Verma, Chairmen at SAIL and NMDC, the company’s operation and performance can be controlled but not the realization, as it is depended on market conditions. Steel prices are stable from past couple of months resulting in firm iron ore prices. NMDC had thus raised their iron ore prices for lumps and fines by INR 100/MT from the month’s beginning.
NMDC is all set to achieve its sales target of 28 MnT in FY14 even when the benefit of evacuation by slurry pipeline is missing, which supplies Iron ore from Kirandul to Kottavatsala in Vishakhapatnam. They are also targeting to export around 2.5-3 MnT in the current fiscal. Margins are not expected to be under pressure as the iron ore prices continue to remain firm. However, the disappointing performance in Q2 FY14 was on account of the increased excise duty to 30% along with unfavorable domestic prices.