NMDC board to consider bonus proposal on November 11

6 Nov 2024 , 10:11 AM

On Tuesday, November 5, the state-run NMDC Ltd. informed the exchanges that a board meeting will be held on November 11 to examine a bonus share issue.

This is the first time in the last 16 years that the corporation will consider issuing bonus shares.

The last time NMDC awarded bonus shares was in 2008, when it distributed two bonus shares for each share held.

In the interim, NMDC bought back its equity shares in 2016, 2019, and 2020.

NMDC shares currently have a face value of ₹1.

NMDC will also report earnings for the September quarter on November 11.

The public sector corporation recorded a 19% YoY increase in net profit to ₹1,969 Crore in the first quarter of the current fiscal year, while income from operations remained steady at ₹5,414 Crore.

In Q1 FY25, profits before interest, taxes, depreciation, and amortisation (EBITDA) were ₹2,725 Crore, marginally up from ₹2,276 Crore in Q1 FY24. EBITDA margins increased to 51% in the June 2024 quarter, up from 42% the year before.

NMDC is India’s largest iron ore producer, with a production capacity of 450.22 lakh tonnes (LT) in FY24.

The company’s stock has increased by 47% in the last year, despite a 13% drop in the recent six months.

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