NMDC Chairman says: Have the operational agility to absorb cyclical volatility
The company’s 63 Annual General Meeting
Hyderabad: NMDC, the Navaratna PSE under the Ministry of Steel held its 63rd AGM on Thursday during which it shared highlights of its spectacular performance achieved during very difficult times.
The pandemic has accelerated some key trends that will bring about a shift in steel demand. “The iron & steel industry will see exciting opportunities from rapid developments through digitalisation and automation, infrastructure initiatives, reorganisation of urban centres and energy transformation. At NMDC we have the required operational agility to absorb the cyclical volatilities in the iron ore and steel sector and stay ahead on a growth trajectory,” said Shri Sumit Deb, Chairman and MD, NMDC.
Addressing the company’s shareholders via video conference, Shri Deb shared the many records set by the NMDC team during FY 21, including a record turnover of
Rs 15,370 crores, the highest since the company’s inception.
Profit before tax (PBT) from operations was Rs 8,902 crores compared to Rs 6,123 crores in the CPLY – an increase of 45.37%. Profit after tax (PAT) witnessed a rise of 73.21%, from Rs 3,610 crores in FY 20 to Rs 6,253 crores.
As India’s largest iron ore miner, NMDC was prepared to meet the unexpected surge in domestic demand and was further supported by the Government’s proactive measures for a quick recovery. Shri Deb pointed out that record production and sales had also been achieved by the NMDC team not spared by the pain of a tough second wave of this pandemic. During the financial year NMDC achieved its highest ever production of 34.15 MT and sales of 33.25 MT.
The company has a capital expenditure of ₹ 3,720 crores planned for FY22. Sharing the progress of the company’s projects – additional screening plant, doubling of railway line and upgradation of conveyor pipeline and slurry pipelines, Shri Deb also stresses on the digital transformation of the company.
“NMDC has made IT and digitalisation a strategic priority, synergising its efforts to significantly enhance competitive advantage and efficiency. We expect technology, automation and data analytics will reinvent all aspects of our business – from mineral exploration to mining, the processing of ore to the sales and distribution of the product,” he said. NMDC is the first CPSE to implement, despite Covid-19 challenges, the Enterprise Resource Planning (ERP) solution on SAP S/4 HANA in 21 months with minimal to near zero disruption to business activity.
The digital transformation at NMDC will include a fleet management system, automatic sampling, vision enhancement systems to avoid accidents under foggy weather and 3D volumetric laser scanners, improving productivity and enhancing operational safety.
In the current fiscal, NMDC expects to achieve production of 47 MT. It will also begin mining coal from the two blocks it has been allotted by Q4 of FY22. The first quarter of FY22 was an extremely rewarding one, NMDC achieved production of 8.91 MT and sales of 9.45 MT respectively – its best Q1 since inception. Total revenue from operations stood at Rs 6512 crore & PAT at Rs 3193 crore in Q1, also the best ever.