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NMDC falls 2% on weak Q4 performance; Rs 7.25 dividend announced in FY24

The state-owned company's profit plunged 37.8 per cent to Rs 1,412.7 crore in the March quarter of financial year 2024 (Q4FY24), from Rs 2,271.5 crore in Q4FY23

Govt to sell up to 7.5% in NMDC via OFS on Tuesday, may get Rs 3,621 cr

SI Reporter New Delhi

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Q4 results impact: Shares of NMDC dropped as much as 2.4 per cent to hit an intraday low of Rs 256.35 per share on Tuesday.

The fall came after the company announced its March quarter (Q4FY24) results post market hours, on May 26.

The state-owned company’s profit plunged 37.8 per cent to Rs 1,412.7 crore in the March quarter of financial year 2024 (Q4FY24), from Rs 2,271.5 crore in the March quarter of financial year 2023 (Q4FY23).

However, NMDC’s topline (revenue) soared 10.9 per cent on a year-on-year (Y-o-Y) basis to Rs 6,489.3 crore in Q4FY24, from Rs 5,851.4 crore in Q4FY23.

At the operating level, earnings before interest, taxes, depreciation and amortisation (Ebitda), also known as operating profit, slipped 2.8 per cent to Rs 2,101.4 crore in Q4FY24, as opposed to Rs 2,162.4 crore in the same quarter a year ago (Q4FY23). 

Ebitda margin, meanwhile, squeezed 460 basis points (bps) to 32.4 per cent in the March quarter of FY24, from 37 per cent in the March quarter of FY23. 

The board also recommended a final dividend of Rs 1.50 per share on the face value of Rs 1 each for the financial year 2023-24, subject to approval of the shareholders in the ensuing Annual General Meeting (AGM).  This would bring the total dividend payout for FY24 to Rs 7.25 per share.

That said, the final dividend, if declared at the ensuing AGM, will be paid to the shareholders within 30 days from the date of AGM. 

NMDC has fixed lump ore price at Rs 6,450 per tonne and Fines at Rs 5,610 per tonne, effective May 28, the company said in an exchange filing.

Established in 1958, NMDC Limited is an Indian public sector undertaking engaged in the exploration of various minerals including iron ore, copper, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, coal, and more.

The 52-week high of the stock is Rs 286.35 while its 52-week low is Rs 103.85 per share. 

At 11:36 AM, shares of NMDC were trading 0.63 per cent lower at Rs 261.05 per share. In comparison, S&P BSE Sensex was trading 0.05 per cent higher at 75,428.38 levels.

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First Published: May 28 2024 | 11:47 AM IST

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