Shares of Gujarat Mineral Development Corporation (GMDC) took a significant hit during early trading on November 2, dropping by more than 9 percent.
The decline was prompted by the company’s dismal performance in the second quarter of the fiscal year 2024. As of 9:19 am, GMDC’s stock was being traded at Rs 318.63 on the NSE, marking a substantial 9.35 percent decrease.
GMDC, a prominent player in the mining industry, reported a profit of Rs 76 crore for the July-September period, a sharp 50 percent decline compared to the same period last fiscal year.
This decline was attributed to weaknesses in both operating performance and top-line revenue. During this period, the company’s revenue from operations witnessed a significant drop, falling by 29 percent to Rs 383 crore.
GMDC, recognized as one of the leading mining companies in India, operates as a State Public Undertaking of the Government of Gujarat.
The company’s challenging financial results have had a noticeable impact on its market value. At 2:19 pm, GMDC shares were still trading lower, experiencing a 7.73 percent decline and reaching Rs 324.70.
The company, which operates five lignite mines in Kutch, South Gujarat, and Bhavnagar regions, is widely regarded as the largest merchant seller of lignite in the country. Despite its established position in the industry, GMDC’s recent financial struggles have raised concerns among investors, leading to the sharp decline in its stock value.
