Shocking Q4 Performance as NMDC Falls 2%
NMDC falls 2% on weak Q4 performance, leaving investors and analysts concerned about the company's future.
Shares of NMDC fell by up to 2.4 percent to reach an intraday low of Rs 256.35 per share on Tuesday. The drop happened after the company announced its March quarter (Q4FY24) results post market hours on May 26. The state-owned company's profit dropped 37.8 percent to Rs 1,412.7 crore in the March quarter of the financial year 2024 (Q4FY24), from Rs 2,271.5 crore in the March quarter of the financial year 2023 (Q4FY23).
However, NMDC's revenue rose 10.9 percent year-on-year (Y-o-Y) 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 amortization (Ebitda), also known as operating profit, fell 2.8 percent to Rs 2,101.4 crore in Q4FY24, compared to Rs 2,162.4 crore in the same quarter a year ago (Q4FY23). The Ebitda margin, meanwhile, decreased by 460 basis points (bps) to 32.4 percent in the March quarter of FY24, from 37 percent 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 by the shareholders at the next Annual General Meeting (AGM). This would bring the total dividend payout for FY24 to Rs 7.25 per share. If declared at the next AGM, the final dividend will be paid to the shareholders within 30 days from the date of the AGM.
NMDC has set the lump ore price at Rs 6,450 per ton and fines at Rs 5,610 per ton, effective May 28, the company said in a stock exchange filing. Established in 1958, NMDC Limited is an Indian public sector enterprise involved 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.
What's Your Reaction?
