GMDC stocks falls 3% on sharp dip in Q4 net profit, revenue

In the last one year, GMDC stock has rallied 134 percent, more than doubling investors' money.

Shares of Gujarat Mineral Development Corporation (GMDC) fell over 3 percent on May 28 after the company reported weak earnings for the quarter ended March 2024.

GMDC reported a 53.2 percent on-year (YoY) decline in net profit at Rs 207 crore in the fiscal fourth. The company's revenue from operations dipped 20.8 percent YoY to Rs 750.7 crore.

At the operating level, GMDC's earnings before interest, tax, depreciation, and amortisation (EBITDA) tanked 47.3 percent on-year to Rs 205.3 crore in the fiscal fourth quarter.

The mining firm's EBITDA margin stood at 27.4 percent in the reporting quarter versus 41.1 percent in the corresponding period in the previous fiscal.

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GMDC board also recommended a dividend of Rs 9.55 per equity share of Rs 2 each for FY24.

At 10:06 am, GMDC shares were trading 3.3 percent lower at Rs 389.40 on the National Stock Exchange (NSE). In the last one year, the stock has rallied 134 percent, more than doubling investors' money.

However, so far this year, the stock has fallen 10 percent, underperforming benchmark Nifty 50 which has risen 5.5 percent during this period.

GMDC is a mining and mineral processing company engaged in lignite exploration and supply in Gujarat. It operates through two segments - Mining and Power.

Its minerals and mines projects include Lignite, Bauxite, Fluorspar, Manganese, Silica Sand, Limestone, Bentonite and Ball Clay. The power products include thermal power, solar power, and wind power.

The company operates five lignite mines, namely, Mata-No-Madh, Rajpardi, Tadkeshwar, Bhavnagar and Umarsar Lignite Mines. It has bauxite mining operations at its Mewasa Bauxite Mines in Devbhoomi Dwarka, a district of Gujarat.

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Its fluorspar project is located in Kadipani, a district of Baroda. The manganese project is located at Shivrajpur, district of Panchmahal. The power project is located at Nani Chher, a district of Kutch.

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