NMDC Q2 PAT rises 10% to Rs 774 cr; board OKs buyback

The state-owned firm said its board has approved a share buyback proposal of upto Rs 1,378 crore.

The board approved a proposal for buyback of upto 13,12,43,809 fully paid-up equity shares of a face value of Re 1 each from the company's shareholders at a price of Rs 105 per equity share payable in cash.

The buyback will be for an aggregate consideration not exceeding Rs 13,78,05,99,945, representing 5% and 5.05% of the total fully paid-up equity share capital and free reserves, respectively. NMDC has fixed 23 November 2020 as a record date for the buyback. As on 30 October 2020, Government of India held 69.65% stake in the company.

Meanwhile, NMDC announced Q2 September 2020 results on Tuesday. On a standalone basis, the state-run miner's net profit rose 10% to to Rs 773.66 crore on 0.5% decline in net sales to Rs 2,229.89 crore in Q2 September 2020 over Q2 September 2019.

Profit before tax stood at Rs 1,062.86 crore in Q2 September 2020, falling 1.6% from Rs 1,080.34 crore in Q2 September 2019. Total tax expense fell 23.3% year-on-year to Rs 289.20 crore in Q2 September 2020 over Q2 September 2019.

EBITDA dropped 5.89% to Rs 1,118 crore in Q2 September 2020 from Rs 1,188 crore in Q2 September 2019. EBITDA margin contracted to 50% in Q2 September 2020 from 53% in Q2 September 2019.

During the quarter, the company's iron ore production increased 13% to 56.37 lakh tonnes (LT), iron ore sales rose 14% to 66.02 LT over the same period last year. The average domestic realization fell 11% to Rs 3,114 per ton in Q2 September 2020 over Q2 September 2019.

NMDC is India's single largest iron ore producer, presently producing about 35 million tonnes of iron ore from 3 fully mechanized mines, two located in Chhattisgarh and one in Karnataka.

Shares of NMDC fell 3.51% to Rs 90.70 on BSE.

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