GMDC Q2 earnings fall 50% YoY to Rs 76 crore, while stock prices decline 9%

 GMDC Q2 earnings fall 50% YoY to Rs 76 crore, while stock prices decline 9%

The stock of GMDC has returned 121.17 percent throughout the last six months. During the same period, the benchmark Nifty50 index has returned 4.64 percent.

In early trading on November 2, shares of Gujarat Mineral Development Corporation (GMDC) fell more than 9 percent after the Mining and Minerals business released its disappointing Q2 results. The GMDC stock was down 9.35% at Rs 318.63 on the NSE at 9:19 a.m.

The mining business, GMDC, reported profit of Rs. 76 crore for the period of July to September in FY24, a steep decline of 50% from the equivalent period in the previous fiscal, with weakening in both operational performance and top-line.

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During the same time, operating revenue fell by 29% to Rs 383 crore. One of the major mining companies in India, GMDC is a State Public Undertaking under the Gujarati government. Currently, the state-owned corporation operates five lignite mines in the regions of Kutch, South Gujarat, and Bhavnagar. It is allegedly the nation's biggest merchant supplier of lignite.

Current GMDC developments

The Gujarat chief minister received a dividend check from the corporation lately totaling Rs 269.44 crore. As per the recent policy of the state government, which aims to enhance the value of PSU shares, GMDC has raised its dividend from Rs 9.10 to Rs 11.45 per share. The policy calls for a minimum payout of thirty percent of profit after taxes or five percent of net worth, whichever is larger. This increase equates to thirty percent of GMDC's net profit for 2022–2023.

Performance of Stocks

The stock of GMDC has returned 121.17 percent throughout the last six months. During the same period, the benchmark Nifty50 index has returned 4.64 percent.