NMDC Extends Tenure Of Chairman And MD Amitava Mukherjee

State-owned NMDC announced on Monday the extension of the tenure of its Chairman and Managing Director, Amitava Mukherjee, for another year.

Mukherjee, who currently serves as the company's Director (Finance), was previously given the additional charge of CMD, according to a regulatory filing.

"The additional charge of the post of Chairman-cum-Managing Director, NMDC Ltd., assigned to Amitava Mukherjee, Director (Finance), NMDC Limited, is extended for a further period of one year w.e.f. 20.11.2024, or till the appointment of a regular incumbent to the post, or until further orders, whichever is the earliest," the company said in the regulatory filing.

Earlier, NMDC had announced that Dec. 27 would be the record date for determining the eligibility of shareholders for the bonus share issuance. Shareholders who hold the stock by this date will be entitled to a bonus issue in a 2:1 ratio.

The iron miner will issue 586 crore equity shares, having a face value of Rs 1 each. The company will allot two fully paid-up bonus shares of face value Rs 1 each for every existing share of face value Rs 1 to the eligible shareholders.

NMDC reported a 17% year-on-year rise in net profit for the second quarter of this financial year at Rs 831.20 crore, compared to Rs 571.60 crore in the same quarter of the previous fiscal year.

Revenue increased by 23% year-on-year for the three months ended September, reaching Rs 4,919 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 16% year-on-year to Rs 1,386 crore. The Ebitda margin expanded to 28.2% from 29.7% in the same period the previous year.

NMDC stock fell as much as 4.05% during the day to Rs 66.51 apiece on the NSE. The stock closed 3.52% lower at Rs 66.88 per share. This compares with a 0.71% decline in the benchmark Nifty 50. It has risen 5.1% in the last 12 months.

Out of 22 analysts tracking the company, 13 maintain a 'buy' rating, three recommend a 'hold,' and six suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 30.7%.

(With Inputs From PTI.)