NMDC gets Board nod for 2:1 bonus issue, posts 23% yoy increase in Q2 net to ₹1,269 cr

State owned NMDC’s Board has approved a 2:1 bonus issue proposal.

Two new fully paid-up equity shares of ₹1 each will be issued for every 1 existing fully paid-up equity share (of ₹1 each) held as on the record date, the country’s largest iron ore producer said on Monday. The bonus shares will be issued on or before January 10.

For implementing the bonus issue, ₹103.40 crore will be capitalised from Capital Redemption Reserve and ₹482.72 crore from General Reserve. As on March 31, NMDC had ₹25,285.76 crore as Free Reserves for capitalisation, a filing by the company showed.

For the quarter ended September, the mining major reported more than 23% increase in standalone net profit to ₹1,268.96 crore from ₹1,027.63 crore a year earlier. Sequentially, it was a 36% decline compared to ₹1,983.97 crore in the Q1 period.

Revenue from operations for the second quarter increased nearly 20% to ₹4,806.57 crore (₹4,013.98 crore). For the June quarter, the company had posted ₹5,377.80 crore.

For the first six months of the fiscal, the net profit increased more than 21% to ₹3,252.93 crore (₹2,677.54 crore) on revenue from operations that rose 8% to ₹10,184.37 crore (₹9,408.64 crore).

On a consolidated basis, net profit for the September quarter was nearly 17% higher year on year at ₹1,195.63 (₹1,024.86 crore). Revenue from operations increased to ₹4,918.91 crore (₹4,013.98 crore).