Tue Nov 12 04:00:00 UTC 2024: ## NMDC Posts 17% Rise in Q2 Profits, Announces 2:1 Bonus Share Issue

**New Delhi:** National Mineral Development Corporation Limited (NMDC) announced a strong performance for the second quarter of the financial year 2024-25, reporting a 17% increase in net profits to ₹1,195.63 crore compared to the same period last year. The state-owned mining giant saw its revenue from core operations surge by 22.54% to ₹4,918.91 crore, driven by an 18.82% increase in revenues from its Iron Ore segment.

Despite the strong performance, NMDC’s share price closed 1.15% lower at ₹232.95 on Monday. This decline could be attributed to the company’s higher expenses, which rose by 25% year-on-year to ₹3,665.47 crore. Increased royalty and other levies were cited as a contributing factor to this rise.

In a significant move, the NMDC board approved a 2:1 bonus share issue. This means for every two shares held by existing investors, one additional share will be issued as a bonus. This decision is aimed at rewarding shareholders and reflects the company’s confidence in its future prospects.

The company’s strong financial performance and the attractive bonus share offer are expected to boost investor confidence. However, rising expenses remain a concern that investors will continue to monitor.

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