Tue Nov 12 07:24:32 UTC 2024: ## NMDC Set to Announce Strong Q2 Results, Plans Second Bonus Share Issuance in 16 Years
**New Delhi, November 11, 2024:** State-run mining giant NMDC is set to release its quarterly results on Monday, with analysts expecting a strong performance. Alongside the earnings announcement, the company will also consider a proposal for a second bonus share issuance in 16 years.
The company’s board meeting on Monday will focus on approving the unaudited financial results for the quarter ended September 30, 2024, and the bonus share plan. NMDC last issued bonus shares in 2008 at a 2:1 ratio. Following the announcement of the new bonus share plan, the company’s stock has been trending downwards.
Despite the stock’s recent decline, NMDC continues to show positive operational performance. In October 2024, the company recorded a 17.15% year-on-year growth in iron ore sales, reaching 4.03 MT. This follows a 33.88% jump in iron ore production and a 13.8% increase in sales compared to September 2024.
Zee Business research estimates NMDC’s standalone revenue to surge 16% year-on-year to Rs 4,664 crore in Q2, compared to Rs 4,014 crore in the same period last year. Analysts anticipate a strong quarter for the company, although profits are expected to be lower compared to the previous quarter.
NMDC’s profit after tax is projected to rise by 38% year-on-year to Rs 1,415 crore, compared to Rs 1,028 crore in Q2 FY23. EBITDA margin is also expected to increase from 30% to 36% in Q2, representing a 600 basis points rise.
The state-owned miner witnessed a 20.25% jump in net profit (from continuing operations) to Rs 1,984.19 crore in Q1 FY25, compared to Rs 1,650.07 crore in Q1 FY24. However, revenue from operations slightly decreased to Rs 5,377.80 crore in the June quarter compared to Rs 5,394.66 crore in Q1 FY24.
The stock has performed well in the past year, rising by 38% compared to the Nifty index’s 24% gain.
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