Stockrabit · Analysts
Questions across 3 calls

Bhavesh Patel

Patel Investments

NMDC Limited

NMDC Limited CC-Mar24.pdf · 2024-05-29
Thank you for the opportunity and congratulations on great set of performance numbers for the last year. My question is, number 1, what benefit will NMDC receive a bill the distributor and stock is for NMDC Steel and will that start accruing in the next couple of years itself? Or is it going to take time? Amitava Mukherjee We plan to do it as soon as possible. It is a win-win situation for both of us. You see, I have a cash, as I said, of INR9,200 crores as of now. And my deployment in the stock would not be more than INR500 crores. I am margining around 8% of bank interest on this. And this is likely to give me a return of around not less than 14%-15%. So that is the minimum that's going to -- for NSL, the benefit is that the evacuation would improve, which would improve the production because NSL has stocking capacity of only 85%, which is 15 days of production. So, we have a regular evacuation and hence production can increase. Here, I think the basic calculation is that we can have delta of the land cost in Hyderabad and Vizag from where we can do the entire count including Chennai market where we can touch and the Andhra market and the Hyderabad. We can have a delta of not less than 2,000 to 3,000 per ton which will be shared back substantially with NSL also. So, it is a win-win situation for both of us. Otherwise, what happens is that once we produce more, we have to make some distressed sales in this trade and that's the amount of distressed sales because we don't have any other stockyards or any other thing and we have fully limited capacity in NSL. So, this could be a great sort of win-win situation for both the companies.
Okay. Thank you on that. Now with the overall increase in capacity in terms of production as well as upcoming capex plan do we expect increasing profit? And because of that increase in absolute dividend amount. I said earlier, you mentioned about 38% dividend payout. But overall as a company, do we expect increasing dividend in terms of actual numbers going ahead?

NHPC Limited