NMDC Q2 Results: Net profit rises 17% YoY to ₹1,196 crore; board approves 2:1 bonus share issue

NMDC Q2 Results: National Mineral Development Corporation Limited (NMDC) announced its July to September quarter results on Monday, November 11. The company recorded nearly a 17 per cent rise in net profits at ₹1,195.63 crore for the second quarter of the financial year 2024-25, compared to ₹1,024.86 crore in the same quarter the previous year, according to the BSE filing on Monday. 

NMDC Ltd shares closed 1.15 per cent lower at ₹232.95 after Monday's trading session, compared to ₹235.65 at the previous market close. The company released the second quarter results after market operating hours on Monday.

The state-owned mining giant posted a 22.54 per cent hike in the revenue from core operations to ₹4,918.91 crore in the second quarter, compared to ₹4,013.98 crore in the same period the previous year.

The company's revenues from its Iron Ore segment increased 18.82 per cent to ₹4,749.04 crore, compared to ₹3,996.67 crore in the same period the previous year. 

NMDC's expenses for the quarter also increased by 25 per cent at ₹3,665.47 crore, compared year-on-year with ₹2,930.95 crore. The company's expenses in royalty and other levies increased by 16.30 per cent year-on-year, one of the factors to drive up the quarterly expenses, as per the financial statements. 

Bonus Issue

The board of directors have approved the issue of bonus shares at the ratio of 2:1. For existing investors, for every 2 shares, the company will issue one more share as a bonus issue, as per their terms.

“Issuance of Bonus Shares to the shareholders of the Company in the ratio of 2:1, i.e. 2 Bonus Equity Shares of face value ₹1/- each fully paid up; for every 1 (One) existing equity share of face value of ₹1/- each fully paid up, to the eligible members of the Company as on the record date, subject to the approval of the shareholders of the company,” said the company in an exchange filing.