India’s largest iron ore producer, NMDC, has made headlines with its announcement of the first interim dividend for the fiscal year 2024-25. This move has piqued the interest of investors, especially as the company’s stock performance continues to be a focal point in the market. Let’s dive into the details of this dividend declaration and what it means for shareholders.
Dividend Declaration and Important Dates
In a recent board meeting held on March 17, 2025, NMDC confirmed an interim dividend of ₹2.30 per share, based on a face value of ₹1. Investors who own shares prior to the designated record date of March 21, 2025, will qualify for this payout. Shareholders can expect to receive their dividends on April 16, 2025.
The company stated, "The Board of Directors declared the first interim dividend at ₹2.30 (Rupees Two and thirty paise only) per equity share of face value of ₹1 each for the financial year 2024-25." This announcement reflects NMDC’s commitment to rewarding its investors.
A Legacy of Rewarding Shareholders
NMDC has a solid track record of consistent dividend distributions. In the previous financial year, FY24, the company paid out ₹7.25 per share, totaling approximately ₹1,685.11 crore. Notably, dividends in prior years included ₹5.91 per share in FY23 and ₹14.74 per share in FY22. The dividend yield has generally fluctuated between 3.6% and 9%, making NMDC an attractive option for income-focused investors.
Financial Performance Highlights
The third quarter of FY24 was particularly strong for NMDC, showcasing a 26.7% rise in net profit, which reached ₹1,882 crore, up from ₹1,484 crore in the corresponding period last year. Revenue increased by 21.4%, amounting to ₹6,567.8 crore, thanks to robust iron ore production and steady demand. The company also reported an EBITDA of ₹2,372 crore, marking an 18.17% year-on-year growth.
Stock Performance Overview
In the latest trading session, NMDC’s stock closed up 1.74% at ₹64.91 on the NSE, outperforming the benchmark Nifty index, which rose by 0.5%. Over the past week, NMDC shares have seen a slight increase of nearly 1%, while a one-month analysis shows a return of 3%. However, looking at a longer-term perspective, the stock has experienced a decline of around 8% over the last six months and 3% on a yearly basis.
Key Market Metrics
- Market Capitalization: ₹19,040 crore
- 52-Week High: ₹95.45
- 52-Week Low: ₹59.70
Conclusion
With its strong financial performance and commitment to dividends, NMDC continues to be a key player in the iron ore market. Investors should keep an eye on upcoming financial reports and market trends as they navigate their investment strategies. For further insights on corporate actions, be sure to check our other articles covering significant developments in the stock market.
