The shares of India’s leading mining and mineral processing company engaged in lignite exploration fell up to 11 percent to Rs 312.20 a share after the company reported weak Q2 results.
The Gujarat Mineral Development Corporation Ltd reported a 29 percent decrease in revenue from operation year on year, from Rs 538 crore in Q2FY23 to Rs 382 crore in Q2FY24. During the same period, net profit declined by 49 percent from Rs 150 crore to Rs 76 crore.
In comparison to the previous quarter, operational revenue decreased by 50 percent from Rs 765 crore in Q1FY24 to Rs 382 crore in Q2FY24, Further net profit declined by 65 percent from Rs 215 crore to Rs 76 crore. According to the company’s exchange filing.
With a market capitalization of Rs 10,304 crores. At 2:54 p.m., Gujarat Mineral Development Corporation Ltd(GMDC) shares were trading at Rs 326.10 a share on the National Stock Exchange, down Rs 25.70 or 7.30 percent.
The company’s total Lignite production during Q2 FY24 was 9.15 lakh MT, against 11.40 lakh MT in Q2 FY23, showing a reduction of 20 percent, Overall Lignite production during H1 FY24 was 27.43 lakh MT, against 36.43 lakh MT in H1 FY23.
The Gujarat Mineral Development Corporation Ltd shares have gained 104 percent return in six months and 127 percent in a year. A shareholder’s investment of Rs. 1 lakh in the business would be worth Rs. 2.04 lakhs in six months and Rs. 2.27 lakhs in a year. Further, The company has a zero debt-to-equity ratio.
The company’s return on equity has increased from 8.49 percent in FY22 to 20.96 percent in FY23, while in the same time frame, the return on capital employed rose from 13.42 percent to 25.83 percent.
According to the recent shareholding pattern, the company promoters hold a 74 percent stake in the company, And retail investors have a 23.09 percent stake in the company.
Gujarat Mineral Development Corporation is primarily engaged in mining and power sector projects including Lignite, Bauxite, fluorspar, Multi-Metal, Manganese, Power, Wind, and Solar.
Written by Omkar Chitnis
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