Quarter –III performance
review 2012-13
1
NMDC Limited
Investors / Analysts / Brokers Meet
25th & 26th Feb 2013Mumbai
Quarter –III performance
review 2012-13
2
Performance Highlights
Q3 FY 2012-13
Quarter –III performance
review 2012-13
3
Index of Presentation
Performance Highlights
Status of Ongoing Projects
Joint Ventures & Subsidiaries
Personnel & HR
Awards & Accolades
Quarter –III performance
review 2012-13
4
PERFORMANCE
(III Qtr of 2012-13 Vs III Qtr of 2011-12)
• Iron Ore Production : 53.64 LT (PY 71.45 LT) 25%
• Iron Ore Sales : 53.26 LT (PY 64.04 LT) 17%
• Turnover : Rs 2048 Cr (PY Rs 2822 Cr) 27%
• Profit before Tax : Rs 1914 Cr (PY Rs 2752 Cr) 30%
• Profit after Tax : Rs 1293 Cr (PY Rs 1859 Cr) 30%
Quarter –III performance
review 2012-13
5
PERFORMANCE
(Upto Dec12 Vs Upto Dec’11)
• Iron Ore Production : 176.13 LT (PY 202.99 LT) 13%
• Iron Ore Sales : 180.35 LT (PY 208.49 LT) 14%
• Turnover : Rs 7500 Cr (PY Rs 8667 Cr) 13%
• Profit before Tax : Rs 7220 Cr (PY Rs 8320 Cr) 13%
• Profit after Tax : Rs 4877 Cr (PY Rs 5623 Cr) 13%
Quarter –III performance
review 2012-13
6
PHYSICAL PERFORMANCE
PARTICULARS
CURRENT YEAR PREVIOUS YEARInc/(Dec) of 5 over 7QTR I QTR II QTR III UPTO THE
QUARTER QTR III UPTO THE QUARTER
1 2 3 4 5(2+3+4) 6 7 8
I. PRODUCTION:
(a) Iron Ore (lwmt) : 68.72 53.77 53.64 176.13 71.45 202.99 (26.86)
(b) Diamonds (Carats) 6041 8536 6684 21261 4866 12313 8948
(c) Sponge Iron (Tons) 10730 7542 9416 27688 8631 28260 (572)
II. SALES:
(a)Iron Ore (lwmt)- Exports - 3.75 3.56 7.31 1.08 3.85 3.46
- Domestic 68.55 54.79 49.70 173.04 62.96 204.64 (31.60)
Total Iron ore 68.55 58.54 53.26 180.35 64.04 208.49 (28.14)
(b) Diamonds 3451 1256 1679 6386 4251 5393 993
(c ) Sponge Iron 11606 7935 9437 28978 7653 26445 2533
Quarter –III performance
review 2012-13
7
CURRENT YEAR PREVIOUS YEAR
Inc/(Dec) of 5 over 7QTR I QTR II QTR III
UPTO THE QUARTER QTR III
UPTO THE QUARTER
1 2 3 4 5 6 7 8
PRODUCTION:
Kirandul 17.83 12.17 14.72 44.72 22.28 73.00 (28.28)
Bacheli 29.60 22.42 23.07 75.09 34.95 93.95 (18.86)
Donimalai 21.29 19.18 15.85 56.32 14.22 36.04 20.28
TOTAL 68.72 53.77 53.64 176.13 71.45 202.99 (26.86)
SALES:
Kirandul 17.41 13.59 12.58 43.58 18.48 72.91 (29.33)
Bacheli 31.60 25.56 24.45 81.61 35.74 98.12 (16.51)
Donimalai 19.54 19.39 16.23 55.16 9.82 37.46 17.70
TOTAL 68.55 58.54 53.26 180.35 64.04 208.49 (28.14)
Note :- Kirandul Sales includes 0.75 LMT and 0.52LMT of despatches to SIU during current year & previous year.
UNIT WISE PHYSICAL PERFORMANCE (Qty in LMT)
Quarter –III performance
review 2012-13
8
FINANCIAL PERFORMANCE (Rs. in Crore)
PARTICULARSCURRENT YEAR PREVIOUS YEAR Inc/(Dec) (%)
Inc/(Dec)
QTR III UPTO QTR III QTR III UPTO QTR III (3) over (5) (3) over (5)
(1) (2) (3) (4) (5) (6) (7)
a) Sales Revenue 2047.69 7500.02 2822.18 8667.31 (1167.29) (13.47)
b) Other income incl. interest 556.26 1691.48 523.95 1466.20 225.28 15.36
Total Income 2603.95 9191.50 3346.13 10133.51 (942.01) 9.30
a) Consumption of raw material 8.54 23.32 5.50 17.96 5.36 29.84
b) Consumption of store and spares 64.01 157.50 59.56 151.37 6.13 4.05
c) Acc/Dec of stock (49.49) (111.26) (38.89) 16.90 (128.16) (758.34)
d) Employee cost 139.19 418.46 135.14 392.88 25.58 6.51
e) Royalty & Cess 204.69 648.92 262.32 729.81 (80.89) (11.08)
f) Selling exp. 176.37 425.14 44.47 146.30 278.84 190.59
g) Others 146.99 409.61 126.39 358.06 51.56 14.40
Total Expenditure 690.30 1971.69 594.49 1813.28 158.41 8.74
Profit Before Tax (PBT) 1913.65 7219.81 2751.64 8320.23 (1100.42) (13.23)
Profit After Tax (PAT) 1292.80 4877.42 1858.81 5623.11 (745.69) (13.26)
Quarter –III performance
review 2012-13
9
PRODUCTION(LWMT)
2012-13 2011-12
Q 1 Q 2 Q 3 Upto Dec’12 Q 1 Q 2 Q 3 Q4 2011-12
Lump 25.22 21.21 19.35 65.78 22.84 26.20 25.65 26.61 101.30
Fines 43.50 32.56 34.29 110.35 38.78 43.72 45.80 43.00 171.30
Total: 68.72 53.77 53.64 176.13 61.62 69.92 71.45 69.61 272.60
Lump:Fines ratio 37:63 39:61 36:64 37:63 37:63 37:63 36:64 38:62 37:63
PHYSICAL PERFORMANCE
Quarter –III performance
review 2012-13
10
DESPATCH ANALYSIS
QTY. IN LMT
Despatch 2012-13 (Apr-Dec‘12) 2011-12 (Apr-Dec‘11)
Bailadila Doni Total Bailadila Doni Total
Rail 122.86 27.83 150.69 125.34 31.92 157.26
Road 4.80 27.33 32.13 7.35 5.50 12.85
Pipe Line - 0.00 - 36.57 0.00 36.57
Total 127.66 55.16 182.82 169.26 37.42 206.68
Rake/day 13.47 15.07
Quarter –III performance
review 2012-13
11
SELLING EXPENSES Rs in crore
ParticularsYear to date
Variance Remarks / Reasons31-Dec-12 31-Dec-11
Railway Freight 232.63 41.32 191.31 Increase in export despatches by 7.51 LMT.
Selling expenses 192.51 104.98 87.53 Due to increase in export qty by 3.46 LMT,
425.14 146.30 278.84
Quarter –III performance
review 2012-13
12
Details of Other Expenses Rs in crore
ParticularsYear to date
Variance Remarks / Reasons31-Dec-12 31-Dec-11
1) Power & electricity 42.40 37.15 5.25 Increase in power charges
2) Repairs & Maintenance 42.58 38.06 4.52 Mainly on account of offloading of maintenance of HEM
3) Other Expenses
a) Raising & Transportation 50.63 27.30 23.33 Increased mining activity at KIOM.
b) Corporate Social Resp. 47.15 39.73 7.42
c) CISF /Security Exp. 50.36 39.80 10.56
d) Travelling Expenses 17.93 14.00 3.93
e) All other expenses 58.72 64.93 (6.21)
Subtotal (a to f) 224.79 185.76 39.03
Total 309.77 260.97 48.80
Quarter –III performance
review 2012-13
13
CAPITAL EXPENDITURE (Up to IIIrd quarter ) in FY 2012-13 - Rs in Crore
Projects/Schemes Actual Upto 3rd Qtr
Bailadila 11B 19.98
Kumarswamy 76.23
3MTPA Steel Plant – CG 672.69
2 MTPA Steel Plant Karnataka 0.00
Pellet Plant- Doni. 140.17
Other Schemes 17.84
AMR 72.37
Business Development 0.00
R&D 8.64
Feasibilities Studies 0.12
Other Ventures 9.96
Total 1018.00
CAPEX for 12th Five Year Plan – Rs.30071 crores
Quarter –III performance
review 2012-13
14
2007-08 2008-09 2009-10 2010-11 2011-12Iron Ore Sales for last 5 years
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
11000
12000
5705.32
7559.11
6222.6
11285.33 11167.56
9M-FY12 9M-FY139M-FY13 vis-à-vis 9M-FY12
1000
2000
3000
4000
5000
6000
7000
8000
9000 8608.46
7401.33
Iron Ore Sales (Rs. in crores)
Quarter –III performance
review 2012-13
15
9M-FY12 9M-FY139M-FY13 vis-à-vis 9M-FY12
1000
2000
3000
4000
5000
6000
7000
8000
9000 8320.23000000001
7219.81
Financial Performance PBT (Rs. in crores)
2007-08 2008-09 2009-10 2010-11 2011-12PBT Performance for last 5 years
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
11000
4947.47
6648.23
5207.32
9727.17
10759.47
Quarter –III performance
review 2012-13
16
2007-08 2008-09 2009-10 2010-11 2011-12PAT Performance for last 5 years
0
1000
2000
3000
4000
5000
6000
7000
8000
3250.98
4372.38
3447.26
6499.22
7265.39
Financial Performance PAT (Rs. in crores)
9M-FY12 9M-FY139M-FY13 vis-à-vis 9M-FY12
1000
2000
3000
4000
5000
6000
7000
8000
9000
5623.11
4877.42
Quarter –III performance
review 2012-13
17
9M 2011-12 9M 2012-130
2000
4000
6000
8000
10000
12000
8420
7322
Cash Profit Amount (Rs in Crores)
2007-08 2008-09 2009-10 2010-11 2011-120
2000
4000
6000
8000
10000
12000
5005
6572
5264
9764
10945
Annual Cash Profit(Rs. In Crores)
Quarter –III performance
review 2012-13
18
31.12.2011 31.12.2012Rs. in crores
Net Worth
10000
12000
14000
16000
18000
20000
22000
24000
26000
28000
30000
24363
28355
Quarter –III performance
review 2012-13
19
1st Interim FY 12-13 2nd Interim FY 12-13Interim Dividend declared in FY 2012-13
0
200
400
600
800
1000
792.94 (200%)
396.47 (100%)
Dividend (Rs. in crore)
2007-08 2008-09 2009-10 2010-11 2011-120
200
400
600
800
1000
1200
1400
1600
1800
641 86
2.04
649.
39
1177
.58
1605
.78
10.53
14.16
44.43
130.77
178.34
Government Share Others
Quarter –III performance
review 2012-13
20
2008-09 2009-10 2010-11 2011-12Earning per share
0
2
4
6
8
10
12
14
16
18
20
11.03
8.69
16.39
18.33
9M-FY12 9M-FY13EPS for 9M FY 12-13
0
2
4
6
8
10
12
14
16 14.18
12.30
Earning per Share (EPS) – in Rs.
Quarter –III performance
review 2012-13
21
Status of ongoing Projects
Quarter –III performance
review 2012-13
22
a) Upgradation of Evacuation Infrastructure
i) Uniflow Railway Line
Uniflow Railway Line commissioned in May 2012. This augments evacuation capacity by 3 million tonnes.
ii) Slurry Pipeline
MoU signed with RINL for construction of Slurry Pipeline and setting up of Pellet Plant at Vizag. This will augment evacuation capacity by 10 million tonnes. Discussions are on for finalization of JV Agreement between NMDC and RINL.
iii) Inmotion Weigh Bridge
Inmotion Weigh Bridge (7) in Bailadila Complex in under installation and this will reduce turn around time and increase in evacuation.
iv) MoU with Indian Railways
The Company has signed an MoU with Indian Railways on 21st December, 2012 for doubling of Railway Line between Jagdalpur and Kirandul of around 150 kms.
Quarter –III performance
review 2012-13
23
Snapshots of Uniflow Railway Line
Quarter –III performance
review 2012-13
24
Snapshots of Uniflow Railway Line
Quarter –III performance
review 2012-13
25
c. Bailadila Deposit 11 B
Location : Kirandul Complex, Dist. South Bastar Chhattisgarh
Capacity : 7.0 MTPA Capital Outlay : Rs. 607.17 Cr EPCM Consultant : M/s MECON, Bangalore
Project is being executed through Seven Packages All the packages have been ordered and works are in progress. Primary Crusher & Downhill conveyor works are in advanced stage of
completion Secondary crusher, Scalping Screen & EOT Cranes trial runs taken Expected to be commissioned by June 2013
Quarter –III performance
review 2012-13
26
Snapshots of Bailadila Deposit 11 B
Quarter –III performance
review 2012-13
27
d) Kumaraswamy Iron Ore Project
Location : Donimalai, Dist. Bellary Karnataka
Capacity : 7.0 MTPA Capital Outlay : Rs. 898.55 Cr EPCM Consultant : M/s MECON, Bangalore
Project is being executed through Six Packages Orders for four main packages are placed and works are in progress. Major Civil works for Primary Crusher house & Secondary Crusher house are
completed Design Engineering of Downhill conveyor package is in advanced stage Civil & structural works are in progress. Likely to be commissioned by November 2013
Quarter –III performance
review 2012-13
28
Kumaraswamy Iron Ore Project
Quarter –III performance
review 2012-13
29
e) Donimalai Pellet Plant
Location : Donimalai, Dist. Bellary Karnataka
Capacity : 1.2 MTPA Capital Outlay : Rs. 572.00 Cr EPCM Consultant : M/s M N Dastur & Co, Kolkata
Project is being executed through Six Packages Orders for five packages are placed and works are in progress. Mobile equipment
package to be ordered Imported equipment received at site Mixer, Annular Cooler, balling discs erection completed. Rotary kiln , chain grate and
other equipment erection is in progress GIS & main transformers erection completed. Civil, Structural & erection works are in progress Likely to be commissioned by November 2013
Quarter –III performance
review 2012-13
30
Snapshots of Donimalai Pellet Plant
Quarter –III performance
review 2012-13
31
Quarter –III performance
review 2012-13
32
f) Integrated Steel Plant of 3.0 MTPA capacity at Nagarnar, Jagdalpur in Chattisgarh State.
The Plant is being set up at an investment of Rs. 15525 crore.
About 2119 acres of land has been in possession of NMDC for the plant and other infrastructure facilities.
All statutory clearances have been obtained.
All nine major technological packages viz., Sinter Plant, Blast furnace, Raw Material Handling system, Coke oven, By product, Steel Melting Shop, Thin slab caster & Hot strip mill, Oxygen plant and Lime & Dolomite packages have been ordered. Civil and structural works started for most of these packages, in full swing.
Order has been placed for one of the major auxiliary package i.e. Power & Blowing Station.
Quarter –III performance
review 2012-13
33
Snapshots of 3.0 MTPA Integrated Steel Plant at Nagarnar
RMHS System BATTERY #1 - Precast Placement
Quarter –III performance
review 2012-13
34Blast Furnace Foundation Scale Pit Under Excavation For Thin Slab Caster & Mills package
Snapshots of 3.0 MTPA Integrated Steel Plant at Nagarnar
Quarter –III performance
review 2012-13
35
g) Diversification into Coal
Shahpur East and Shahpur West Coal Blocks in M.P. allotted to NMDC under Government Dispensation Route for Commercial Mining and detailed exploration done through MECL under MoU.
Mining PlanMoC approved the Mining Plan including Mine Closure plan for Shahpur West and Shahpur East Coal blocks on 07.02.2012 and 27.12.2012 respectively.
Mining LeaseMoC granted the prior approval for ML of Shahpur West Coal Block on 02.08.2012. Approval for ML of Shahpur East is awaited.
Forest Clearance Revised Forest clearance applications for Shahpur East and Shahpur West Coal Blocks have been submitted to C.F. Shahdol on 03.11.2011. Joint Inspection survey has been completed for Shahpur East and Shahpur West Coal Blocks along with Forest Officers.
Quarter –III performance
review 2012-13
36
Land AcquisitionApplications for Land acquisition for both the coal blocks have been submitted to concerned district Collectors.
Environment Clearance MOEF issued revised Terms of Reference letter (TOR) on 10.01.2013 with validity date 27.10.2013. Draft EIA/EMP report has been submitted to M.P. Pollution Control Board, Bhopal and Regional Office at Shahdol.
Preparation of DPR The Consultant M/s SCCL, has prepared Detailed Feasibility Reports.
As per approved Mining Plans the Coal Production will start by end of 2014, for which NMDC is taking all necessary steps.
NMDC applied for 12 coal blocks (3 for commercial + 9 for power) out of 17 coal blocks notified by MoC in its notification dated 31.12.2012 for allotment of coal blocks to Govt. Companies under Coal Mines Rule, 2012.
Quarter –III performance
review 2012-13
37
Capacity of existing mines in Bailadila sector after expansion by 2014-15
Kirandul Complex Bacheli Complex Deposit – 14 : 5 MTPA Deposit – 5 : 10
MTPA Deposit – 11C : 7 MTPA Deposit – 10&11A : 7
MTPA Deposit – 11B : 7 MTPA Total : 17
MTPA Total : 19 MTPA
Capacity of existing mines in Karnataka after expansion
Donimalai : 7 mt
Kumaraswamy : 7 mt
Quarter –III performance
review 2012-13
38
Joint Ventures and Subsidiaries
Name of the Company PartnerStake
held by NMDC
Purpose
J&KMDC Ltd. JKML 74% Setting up of Magnesite Project in the State of Jammu
NMDC-CMDC Ltd. CMDC 51% Development of Iron Ore Deposit Nos.13 & 4 at Bailadila.
NMDC Power Ltd. --- 100% Setting up of Power Plant in respect of 3.0 MTPA Steel Plant at Nagarnar.
Jharkhand National Mineral Development Corporation Ltd.
JSMDC 60% Development of Iron Ore Deposit at Sasangoda, Jharkhand.
Legacy Iron Ore Ltd. Listed Company based at Perth Australia
50% Development of Hematite Iron Ore Reserves and Gold Deposits
Quarter –III performance
review 2012-13
39
Joint Ventures and Subsidiaries (Contd…)
Name of the Company PartnerStake
held by NMDC
Purpose
Kopano-NMDC Mineral Pty. Ltd., Johannesburg
Kopano Logistic Services (Pty.) Ltd.
50% To acquire and develop mineral prospects for steel making raw material such as Iron Ore, Coal and Manganese Ore.
International Coal Ventures Pvt. Ltd.
SAIL, Coal India, RINL
14.29% Acquisition of Coking and Thermal Coal assets abroad.
Krishnapatnam Railway Co. Ltd.
RVNL, Govt. of A.P. 15% Construction, operation and maintenance of 112 km new BG line from Obulavaripalle to Krishnapatnam
Neelachal Ispat Nigam Ltd.
MMTC & Others 12.87% Pig Iron Plant at Orissa and also engaged in production of BF Coke, Sinter etc.
Quarter –III performance
review 2012-13
40
Analysis of Manpower Position (in Nos.)
2009 2010 2011 20125400
5500
5600
5700
5800
5900
6000
6100
6200
5652
5895
6128
5924
Number of Employees as on 31.01.2013 - 5811
Quarter –III performance
review 2012-13
41
Analysis of Employee Cost (Rs. in crores)
2009 2010 2011 2012100
200
300
400
500
600
421.1 419.51
491.05
529.10
9M-FY12 9M-FY139M FY 12-13
100
200
300
400
500
392.88418.46
Quarter –III performance
review 2012-13
42
ANALYSIS OF EMPLOYEE COST Rs in Crore
ParticularsYear to date
Variance Remarks / Reasons31-Dec-12 31-Dec-11
Salaries, Wages & Bonus 298.12 274.19 23.93 Prov. for Wage Revision of
workmen Rs. 25.72 Cr
Contribution to Staff PF,EPF & DLI 22.24 19.27 2.97
Contribution to Group Gratuity Fund 17.03 20.10 (3.07)
Workmen and Staff Welfare Exp. 81.07 79.32 1.75
TOTAL 418.46 392.88 25.58
Quarter –III performance
review 2012-13
432006-07 2007-08 2008-09 2009-10 2010-11 2011-12
0
20
40
60
80
100
120
140
160
180
67.12
94.72
122.75
93.58
159.05167.10
Value added per employee (Rs. in lakhs)
Quarter –III performance
review 2012-13
44
CSR Activities
NMDC has identified 6 major thrust areas of CSR:-
a) Infrastructure
b) Drinking Water
c) Health
d) Education
e) Training
f) Employment
Quarter –III performance
review 2012-13
45
Mile stones & Accolades
• Signing of MoU with Govt. since 1991-92.• Excellent performer in MoU ratings in almost all the years.• PSE Excellence Award as Company of the Year in Navratna category• Indira Gandhi Rajbasha shield for 13 times.• ‘Star PSU of the Year’ award (Business Standard).• Best PSU of the year 2012 (Mineral sector/ Navratna/ Overall categories)• by Dun & Bradstreet• CAPEXIL top export award for the year 2010-11.• Commendation certificate for CSR (SCOPE)• Innovative leadership/ HR leadership/ Global HR excellent award (IPE) • India Pride Award (Metals, Minerals & Trade including Mining)
Quarter –III performance
review 2012-13
46
Disclaimer
Cautionary Statement
The statements contained in the Presentation may be forward looking statements and progressive within the meaning of applicable laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, government policies and other incidental factors that may arise. Readers are cautioned not to place undue reliance on the forward looking statements.
Quarter –III performance
review 2012-13
47
THANK YOU