Archive · 16 Aug 2025
NMDC Steel: Debt Decreases Amidst Divestment
NMDC Steel, a steel company, reduced its overall debt in the past year.
However, it took on more short-term loans.
The government plans to sell a large portion of the company.
The company lost money, even though it made a lot of money through sales.
It has loans to pay back and the interest rates on the loans are high.
The company is working on increasing profits.
NMDC Steel's total borrowings decreased by 11.3% in FY25.
Long-term borrowings fell, but short-term borrowings rose.
The government is proceeding with the divestment of its 50.79% shareholding.
NMDC Steel reported a loss of ₹2,374 crore in its first full year of operations.
Debt-to-equity ratio increased slightly, and finance costs nearly doubled.
- Who
- NMDC Steel Ltd.
- What
- NMDC Steel's financial performance and government divestment plans.
- When
- FY25, ending August 2025.
- Where
- The Nagarnar steel plant.
- Why
- To provide an update on the company's financial standing and the ongoing divestment process.
Stakeholders
Investors
Impact of the Divestment
Stakeholders
Stakeholders may view the divestment positively, anticipating potential improvements in the company's performance.
Investors
Stakeholders may view the divestment negatively, fearing job losses or changes in the company's strategic direction.
- Total Borrowings FY25
- ₹5,897.64 crore
- Long-term Borrowings FY25
- ₹3,289.31 crore
- Short-term Borrowings FY25
- ₹2,608.33 crore
- Loss
- ₹2,374 crore
- Turnover
- ₹8,503 crore
- Debt-to-Equity Ratio
- 0.45
- Interest Rate on Term Loan
- 12.45%