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State-owned NMDC Ltd reported an 18% YoY profit increase for Q2, reaching ₹1,211.6 crore. Revenue surged 22.5% to ₹4,919 crore, alongside a 2:1 bonus share approval. NMDC share price closed at ₹232.95 on BSE.
State-owned NMDC Ltd has announced a 2:1 bonus share issue following an 18.1% year-on-year (YoY) rise in net profit to ₹1,211.6 crore for the second quarter ending 30 September 2024. NMDC’s board approved two bonus shares for every share held, reflecting the company’s solid quarterly performance and increased shareholder value.
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Net Profit: Increased 18.1% YoY to ₹1,211.6 crore.
Revenue: Up 22.5% YoY, totalling ₹4,919 crore for Q2.
EBITDA: Increased 16.4% to ₹1,385.7 crore, with a 28.2% EBITDA margin.
Bonus Share Ratio: Two bonus shares for each existing share.
NMDC Share Price: Closed at ₹232.95, down by ₹2.70.
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NMDC’s revenue from operations surged by 22.5% YoY to ₹4,919 crore in Q2 FY2024, significantly above last year’s figure of ₹4,014 crore. However, the revenue and profit fell short of market estimates, with analysts predicting revenue of ₹4,681 crore and profit of ₹1,433 crore. The EBITDA rose by 16.4%, reaching ₹1,385.7 crore compared to ₹1,191 crore last year, although it was below the expected ₹1,672 crore. Despite the robust growth, the EBITDA margin saw a slight dip, standing at 28.2%, compared to 29.7% in Q2 FY2023.
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To further reward shareholders, NMDC’s board approved a 2:1 bonus share issuance. This means eligible shareholders will receive two bonus shares for every existing share held. Additionally, the company has proposed an increase in authorised share capital from ₹400 crore to ₹1,000 crore, with regulatory approvals pending. This increase will allow NMDC to issue up to 1,000 crore equity shares, facilitating future growth initiatives and shareholder rewards.
Financial Metric | Q2 FY2024 | Q2 FY2023 | CNBC-TV18 Poll | YoY Growth |
Net Profit | ₹1,211.6 crore | ₹1,026 crore | ₹1,433 crore | 18.1% |
Revenue | ₹4,919 crore | ₹4,014 crore | ₹4,681 crore | 22.5% |
EBITDA | ₹1,385.7 crore | ₹1,191 crore | ₹1,672 crore | 16.4% |
EBITDA Margin | 28.2% | 29.7% | 35.7% | -1.5% |
The NMDC share price saw a minor dip following the announcement, closing at ₹232.95 on the BSE, down by ₹2.70 or 1.15%. The decline could reflect investor response to the lower-than-expected results, despite NMDC’s efforts to enhance shareholder value through bonus shares. The NMDC share price may respond to these developments as investors consider the long-term value of the bonus issue.
NMDC’s Q2 performance showcases steady growth in revenue and profit, although it missed market expectations. The issuance of bonus shares at a 2:1 ratio and the planned increase in authorised share capital reinforce NMDC’s commitment to shareholder value, positioning the company for continued financial resilience in future quarters.
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