NMDC Steel Ltd. has reported a significant widening of its losses for the second quarter of FY24, posting a loss of Rs 5.95 billion compared to Rs 1.6 billion in the same period last year. Despite the loss, the company’s income from operations rose to Rs 15.35 billion, marking a year-on-year increase, driven by higher sales volumes and improved demand.
The steelmaker attributed the increased loss to several factors, including higher input costs, challenges in raw material procurement, and subdued prices in the global steel market. Additionally, rising energy costs and logistics disruptions added pressure on margins.
However, the company highlighted that its overall sales performance had shown positive growth, with a steady rise in domestic demand. NMDC Steel remains focused on cost-cutting measures and efficiency improvements to address the profitability challenges in the near term.
The company also indicated that it is exploring strategic measures to improve its financial performance in the coming quarters, including the scaling up of production and expansion into new markets.
