Nmdc Steel Limited
NMDC Steel Limited (NSL) was incorporated in October 2022 with an effective date of April 1, 2021. It is operating a 3.0-metrictonne-per-annum (mtpa) greenfield integrated steel plant, designed through the blast furnace-basic oxygen furnace (BF-BOF) ...
Key Metrics
EPS
-5.32
Current ratio
0.99
Debt/Equity
0.90
Debt/EBITDA
-10.53
Interest coverage ratio
-
Operating Cashflow to total debt
-0.37
Financials
Pros & Cons
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Here's what we like about this company and potential risks we have identified.
Pros
Status as a majority-owned GoIentity; managerial/ operational support from NMDC Limited till NSL gets divested
Long-term iron ore sourcing arrangement with NMDC Limited ensures steady availability of high-grade iron ore, helping improve hot metal productivity and lower fuel rates
State-of-the-art plant with high level of automation, energy efficient systems and captive power generation to support cost competitiveness after operations have been adequately ramped up
Value-added/ special steel products in the portfolio is expected to support realisations over medium to long term
Liquidity position: Adequate
Cons
Significant delay in ramp-up period over earlier expectations, leading to larger-than-expected losses in FY2024/ FY2025
Exposed to commercial and marketing risks as the product is yet to be accepted in the market; partially mitigated by the proposed support from NMDC Limited to manage the distribution and sales for the company
Sizeable debt servicing requirements during the initial period of cash burn to increase leverage and weaken liquidity
Exposed to operational and stabilisation risks, given the limited track record of NSL and O&M contractor in steel plant operations
Inherent cyclicality of the steel sector exposes to earnings volatility
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About Nmdc Steel Limited bond.
This comprehensive profile covers key factual information about Nmdc Steel Limited. NMDC Steel Limited (NSL) was incorporated in October 2022 with an effective date of April 1, 2021. It is operating a 3.0-metrictonne-per-annum (mtpa) greenfield integrated steel plant, designed through the blast furnace-basic oxygen furnace (BF-BOF) route at Nagarnar, near Jagdalpur, in the Bastar district of Chhattisgarh. The plant was commissioned on August 31, 2023. NSL’s steel plant can produce 2.9 mtpa of finished steel products like HR coils, sheets and plates. The HR plates produced in the plant will be used to manufacture LPG cylinders, API grade pipes, bridges, steel structures, ships, large diameter pipes, storage tanks, boilers, railway wagons, automobiles and pressure vessels. EPS in Mar-2024 was -5.32. Current ratio in Mar-2024 was 0.99. Debt/Equity in Mar-2024 was 0.90. Debt/EBITDA in Mar-2024 was -10.53. Interest coverage ratio in Mar-2024 was . Operating Cashflow to total debt in Mar-2024 was -0.37. Total revenue for Mar-2025(E) was ₹6457.21. Net income for Mar-2025(E) stood at ₹-2571.84. Total assets as of Mar-2024 were ₹29,368.32. Operating cash flow for Mar-2024 was ₹-2,732.67. Peers and comparison entities consist of Nmdc Steel Limited, Jsw Steel Limited, Tata Steel Limited, Jindal Steel And Power Limited. As of Dec 2024, promoters hold N/A% while others hold N/A% of equity. Key strengths include: Status as a majority-owned GoIentity; managerial/ operational support from NMDC Limited till NSL gets divested; Long-term iron ore sourcing arrangement with NMDC Limited ensures steady availability of high-grade iron ore, helping improve hot metal productivity and lower fuel rates; State-of-the-art plant with high level of automation, energy efficient systems and captive power generation to support cost competitiveness after operations have been adequately ramped up; Value-added/ special steel products in the portfolio is expected to support realisations over medium to long term; Liquidity position: Adequate. Key risks include: Significant delay in ramp-up period over earlier expectations, leading to larger-than-expected losses in FY2024/ FY2025; Exposed to commercial and marketing risks as the product is yet to be accepted in the market; partially mitigated by the proposed support from NMDC Limited to manage the distribution and sales for the company; Sizeable debt servicing requirements during the initial period of cash burn to increase leverage and weaken liquidity; Exposed to operational and stabilisation risks, given the limited track record of NSL and O&M contractor in steel plant operations; Inherent cyclicality of the steel sector exposes to earnings volatility . Leadership team details include Abhijit Narendra (Government Nominee Director), Amitava Mukherjee (Chairman & Managing Director), Aniket Kulshreshtha (Company Secretary & Compliance Officer), Sukriti Likhi (Government Nominee Director), Vinay Kumar (Director - Technical), Vishwanath Suresh (Director - Commercial). This detailed corporate overview is structured to provide a thorough understanding of all available data points, enhance search visibility, and support investor analysis.