NMDC board to consider bonus issue for first time in 16 years on November 11

Stock Market Today: NMDC, a Navratna Public Sector Enterprise (PSE) under the Ministry of Steel, on Tuesday, November 5 announced that its board of directors will consider a bonus share issue on Monday, November 11.

The company's board will also consider and approve the financial results for the quarter ended September 2024.

NMDC in an exchange filing today said, “Meeting of Board of Directors of the Company is scheduled to be held on Monday, 11th November 2024 inter-alia, to consider, approve and take on record the Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter ended 30th September 2024 and a proposal for issue of Bonus Shares to the shareholders of the company, subject to requisite approvals.”

Before this, the company had announced a bonus issue of shares in the ratio of 2:1 in May 2008, thus making it the first such issue in 16 years.

NMDC Stock Price Performance

NMDC stock closed the session at ₹234.70, up 3.60 per cent, on the BSE following the announcement that the board will mull a bonus issue at its upcoming meeting.

In the last one year, the stock has surged 47 per cent although it has fallen 13 per cent in the past six months.

NMDC Q1 Results Performance

The public sector company reported a 19 per cent year-on-year (YoY) growth in its net profit for the first quarter of the current financial year to ₹1,969 crore while its revenue from operations was flat at ₹5,414 crore.

The earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at ₹2,725 crore in Q1 FY25, slightly higher than ₹2,276 crore in Q1 FY24. EBITDA margins expanded to 51 per cent during the June 2024 quarter from 42 per cent on a YoY basis.

NMDC is India's largest iron ore producer, with a production capacity of 450.22 lakh tonne (LT) as of FY24.