NMDC Q2 Results | Navratna approves 2:1 bonus issue; net profit rises 18% missing forecast

State-owned NMDC Ltd on Tuesday (November 11) reported an 18.1% year-on-year (YoY) increase in net profit at ₹1,211.6 crore for the second quarter that ended on September 30, 2024.

In the corresponding quarter of the previous fiscal, NMDC posted a net profit of ₹1,026 crore, the company said in a regulatory filing. The CNBC-TV18 poll had predicted a profit of ₹1,433 crore for the quarter under review.

The company's revenue from operations surged 22.5% to ₹4,919 crore  against ₹4,014 crore in the corresponding period of the preceding fiscal. The CNBC-TV18 poll had predicted revenue of ₹4,681 crore for the quarter under review.

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At the operating level, EBITDA was up 16.4% to ₹1,385.7 crore in the second quarter of this fiscal over ₹1,191 crore in the corresponding period in the previous fiscal. The CNBC-TV18 poll had predicted an EBITDA of ₹1,672 crore for the quarter under review.

The EBITDA margin stood at 28.2% in the reporting quarter versus 29.7% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll had predicted a margin of 35.7% for the quarter under review.

The board has approved the issuance of bonus shares to the shareholders of the company in the ratio of 2:1, i.e. two bonus equity shares of face value ₹1 each for every one existing equity share of face value of ₹1 each, to the eligible members of the company as on the record date, subject to the approval of the shareholders of the company.

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NMDC's board has also approved an increase in the company's authorised share capital from ₹400 crore, divided into 400 crore equity shares of ₹1 each, to ₹1,000 crore, divided into 1,000 crore equity shares of ₹1 each. This increase is subject to the necessary regulatory approvals.

The results came after the close of the market hours. Shares of NMDC Ltd ended at ₹232.95, down by ₹2.70, or 1.15%, on the BSE.