NMDC Steel’s Q2 Loss Soars to Rs 595 Crore Amid Rising Expenses

NMDC Steel Limited reported a substantial net loss of Rs 595.37 crore for Q2 FY24, reflecting a significant rise from the Rs 131.10 crore loss recorded in the same quarter last year. The surge in losses was attributed to a marked increase in expenses, with total expenditure climbing to Rs 2,364.39 crore, up from Rs 464.93 crore in Q2 FY23.

Despite this, the company saw growth in total income, which surged to Rs 1,535.46 crore, a notable rise from Rs 290.27 crore a year earlier. This growth follows the commencement of commercial operations at the 3-million-tonne Nagar Steel Plant in Nagarnar, Chhattisgarh, on August 31, 2023. NMDC Steel Ltd, a demerged entity from mining major NMDC, owns and operates this steel plant, recognized as one of India’s youngest and constructed with an investment of approximately Rs 23,000 crore.

As NMDC Steel ramps up production, the plant recently reached a significant milestone, achieving a production level of 1 million tonnes of hot-rolled coil. This development reflects the company’s intent to leverage the newly operational facility’s capacity in a challenging market. The company aims to stabilize costs while optimizing production to counter rising expenditures and improve financial performance in the coming quarters.

The ongoing focus on optimizing operational efficiencies will be crucial for NMDC Steel as it navigates high expenses and works to enhance output from India’s newest steel production hub.