How has been the historical performance of NMDC Steel?

Aug 19 2025 10:45 PM IST
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NMDC Steel has shown significant growth in net sales, reaching 8,503.05 crore in March 2025, but continues to face substantial losses, with an operating profit of -1,716.74 crore and a net profit of -2,373.78 crore. Despite decreasing total liabilities and assets, cash flow from operations improved to 1,965.00 crore, indicating better cash generation.
Answer:
The historical performance of NMDC Steel shows significant growth in net sales and total operating income, with figures reaching 8,503.05 crore in March 2025, up from 3,048.99 crore in March 2024, and starting from zero in the previous two years. However, the company has faced substantial losses, with an operating profit of -1,716.74 crore in March 2025, worsening from -1,317.63 crore in March 2024. The profit before tax also declined to -3,321.72 crore in March 2025 from -2,201.02 crore in the prior year. The net profit followed a similar trend, recording -2,373.78 crore in March 2025 compared to -1,560.32 crore in March 2024. The company's total liabilities decreased to 26,871.74 crore in March 2025 from 28,718.26 crore in March 2024, while total assets also fell to 26,871.74 crore from 28,718.26 crore. Cash flow from operating activities showed improvement, reaching 1,965.00 crore in March 2025, compared to -2,825.00 crore in March 2024.

Breakdown:
NMDC Steel's financial trajectory indicates a strong increase in net sales and total operating income, reflecting a significant operational ramp-up. Despite this growth, the company has struggled with profitability, as evidenced by a negative operating profit and worsening net losses over the past two years. The total liabilities and assets have both decreased, suggesting a tightening of the financial position, while cash flow from operating activities has turned positive, indicating improved operational cash generation. Overall, while NMDC Steel has made strides in revenue generation, it continues to face challenges in achieving profitability and managing its financial health effectively.
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