NMDC Steel: Rising Expenses Lead to Increased Losses

NMDC Steel reported a widened loss of Rs 595.37 crore in the September quarter due to rising expenses. Despite an increase in total income to Rs 1,535.46 crore compared to the previous year, expenses surged to Rs 2,364.39 crore. The Nagarnar plant commenced commercial operations in August 2023.

NMDC Steel has reported a significant widening of losses for the September quarter, with figures reaching Rs 595.37 crore, driven by escalated expenses.

In contrast, a year ago the company reported a considerably lower loss of Rs 131.10 crore, as outlined in their latest exchange filing. Despite a rise in total income to Rs 1,535.46 crore from Rs 290.27 crore last year, the company's expenses soared dramatically to Rs 2,364.39 crore in the second quarter of this fiscal year from Rs 464.93 crore a year prior.

NMDC Steel Ltd, a newly formed entity from the demerger of mining firm NMDC, operates the Nagar Steel Plant at Nagarnar, Chhattisgarh. Noted as India's youngest steel unit, the plant commenced commercial operations in August 2023, backed by an investment of approximately Rs 23,000 crore.

(With inputs from agencies.)