Quarter –III performance review 2012-13 1 NMDC Limited Investors / Analysts / Brokers Meet 25 th & 26 th Feb 2013 Mumbai

Quarter –III performance

review 2012-13

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NMDC Limited

Investors / Analysts / Brokers Meet

25th & 26th Feb 2013Mumbai


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Performance Highlights

Q3 FY 2012-13


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Index of Presentation

Performance Highlights

Status of Ongoing Projects

Joint Ventures & Subsidiaries

Personnel & HR

Awards & Accolades


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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%


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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%


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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


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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)


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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)


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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


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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


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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


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Details of Other Expenses Rs in crore



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


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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


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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)


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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


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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)


1000

2000

3000

4000

5000

6000

7000

8000

9000

5623.11

4877.42


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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)


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31.12.2011 31.12.2012Rs. in crores

Net Worth

10000

12000

14000

16000

18000

20000

22000

24000

26000

28000

30000

24363

28355


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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


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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.


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Status of ongoing Projects


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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.


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Snapshots of Uniflow Railway Line


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Snapshots of Uniflow Railway Line


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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


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Snapshots of Bailadila Deposit 11 B


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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


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Kumaraswamy Iron Ore Project


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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


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Snapshots of Donimalai Pellet Plant


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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.


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Snapshots of 3.0 MTPA Integrated Steel Plant at Nagarnar

RMHS System BATTERY #1 - Precast Placement


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Snapshots of 3.0 MTPA Integrated Steel Plant at Nagarnar


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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.


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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.


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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


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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


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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.


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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


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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


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ANALYSIS OF EMPLOYEE COST Rs in Crore



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


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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)


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CSR Activities

NMDC has identified 6 major thrust areas of CSR:-

a) Infrastructure

b) Drinking Water

c) Health

d) Education

e) Training

f) Employment


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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)


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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.


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THANK YOU

Documents

Quarter –III performance review 2012-13 1 NMDC Limited Investors / Analysts / Brokers Meet 25 th & 26 th Feb 2013 Mumbai