Iron ore price recovery, steady demand positive for state owned NMDC

NMDC planned capex of Rs 1,750-1,800 crore for FY24 and Rs 2,000-2,100 crore for FY25

As the largest domestic producer of iron ore, NMDC Ltd is expected to produce around 45 million tonnes (mt) of ore in FY24. Its 11MFY24 production is around 40.2 mt. In FY25, it could hit 50 mt and it may reach 55 mt by FY26. The PSU has capex plans for multiple projects, which should improve the product mix and augment capacity to 100 mt for FY30.

NMDC provisional volume numbers for Q4FY24 aggregate to 13.3 mt (down 6 per cent Y-o-Y but up 9 per cent Q-o-Q). It was impacted by lower production and offtake in Karnataka. The FY24