NMDC Ltd., India’s largest iron ore producer, released its Q2 FY25 financial results, demonstrating a steady performance with a rise in revenue but encountering some cost challenges. Alongside the earnings report, the company announced a 2:1 bonus issue, giving investors additional shares, which has added to the stock’s appeal in the market.
As of 9:16 am the shares were trading 2.60% lower at ₹226.87 on NSE
- Revenue from Operations: NMDC’s revenue reached ₹4,918.91 crore, showing a solid year-on-year growth of 22.6% compared to ₹4,013.98 crore in Q2 FY24. However, there was a sequential decline of 9.2% from ₹5,414.19 crore in Q1 FY25, which may reflect seasonal trends or demand fluctuations in the sector.
- Total Income: Total income for the quarter stood at ₹5,279.68 crore, up from ₹4,335.02 crore in the same period last year, reflecting the company’s ability to capture growth despite industry challenges.
- Expenses: Total expenses for Q2 FY25 amounted to ₹3,665.47 crore, up from ₹2,930.95 crore in Q2 FY24, driven largely by higher royalty fees and employee benefit costs.
- Profit Before Tax (PBT): PBT came in at ₹1,614.21 crore, a 15% increase year-over-year from ₹1,404.07 crore in Q2 FY24. Sequentially, however, it showed a decline from ₹2,607.95 crore in Q1 FY25.
- Net Profit (PAT): After tax adjustments, the net profit was ₹1,195.82 crore, marking an improvement from ₹1,025.07 crore in Q2 FY24, though down from ₹1,963.57 crore in the previous quarter.
Bonus Issue Announcement:
The NMDC board has approved a 2:1 bonus share issue for shareholders. This means investors will receive two fully paid-up equity shares with a face value of ₹1 each for every one share they currently hold. This move is seen as an attractive reward to shareholders and is expected to boost investor confidence.
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