GMDC Q4 Results: Dividend of ₹9.55 Recommended, Net Profit Dives

State-owned Gujarat Mineral Development Corporation Ltd (GMDC) reported its financial results for the fourth quarter ending March 31, 2024, revealing a significant decline in net profit. The company announced a 53.2% year-on-year (YoY) decrease in net profit, amounting to ₹207 crore, compared to ₹442.2 crore in the same period last year.

Financial Performance

GMDC’s revenue from operations dropped by 20.8% to ₹750.7 crore from ₹948.2 crore in the corresponding quarter of the previous fiscal year. This decline in revenue reflects the challenging market conditions and operational headwinds faced by the company.

At the operating level, earnings before interest, tax, depreciation, and amortization (EBITDA) fell by 47.3% to ₹205.3 crore, down from ₹389.5 crore in the year-ago period. Consequently, the EBITDA margin for the reporting quarter stood at 27.4%, a significant reduction from 41.1% in the corresponding period of the previous fiscal year. The sharp decline in EBITDA and margins underscores the pressures on profitability and efficiency.

Dividend Announcement

Despite the downturn in financial performance, the board of GMDC has recommended a dividend of ₹9.55 per equity share of ₹2 each for the financial year ending March 31, 2024. This decision demonstrates the company’s commitment to delivering shareholder value even amidst financial challenges.

Market Reaction

The financial results were disclosed after the market hours. On the BSE, shares of GMDC ended at ₹403.45, marking a decrease of ₹5.95 or 1.45% from the previous close. The stock performance indicates a cautious response from investors to the quarterly results and the broader market conditions.

Conclusion

GMDC’s Q4 results highlight significant declines in both net profit and revenue, driven by operational challenges. However, the recommendation of a substantial dividend indicates the company’s ongoing commitment to shareholder returns. The financial landscape for GMDC in the coming quarters will likely be closely watched by investors and market analysts, given the current performance trends and market conditions.

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