NMDC Full Form, Functions, and Latest Financial Details

What is the Full Form of NMDC? – NMDC Full Form

  The full form of NMDC is National Mineral Development Corporation. It is a public sector company and falls under the Mining Sector. NMDC Ltd. was founded on November 15, 1958. It was incorporated under the Companies Act. It is the only mechanized diamond mine in the country. The Government of India owns NMDC Ltd. through the Ministry of Steel. NMDC is the largest exporter & producer of iron ore in India. They are involved in the research of a wide range of minerals. This includes iron ore, copper, rock phosphate, limestone etc. NMDC produces more than 30 million tones of iron ore from its Karnataka and Chhattisgarh mines. It also manages a diamond mine at Panna whose annual output is over one lakh carats. NMDC has done pioneering research for developing iron ore mines in Karnataka. It covers regions like Donimalai, Kudremukh, Kumaraswam, Bababudan, and Ramandurg. NMDC developed the Donimalai iron ore mine to export iron ore to Japan and South Korea. Bailadila iron ore mine is the first large scale open cast mechanised iron ore mine in India.

Main objectives of NMDC : –

• Meeting the rising mineral demands of the domestic as well as foreign markets.
• Increasing operations in the field of mineral processing to meet global requirements.
• Raising iron ore output to 67 MTPA by 2021-22
• Setting up the Nagarnar Steel Plant and achieve excellence in the field.

Key Personnel’s NMDC India Limited. :

• Shri Sumit Deb – Chairman – Managing Director
• Shri P.K. Satpathy – Director (Production)
• Shri Amitava Mukherjee – Director (Finance)
• Shri Alok Kumar Mehta – Director (Commercial)
• Shri Somnath Nandi – Director (Technical)
• Smt. Rasika Chaube – Director
• Smt. SukritiLikhi – Director

Shareholding Pattern of NMDC :

	Mar 2020	Jun 2020	Sep 2020	Dec 2020	Mar 2021
Promoters (%)	69.65	69.65	69.65	69.65	68.29
FIIs (%)	6.03	5.35	4.45	4.46	4.63
DIIs (%)	19.96	20.33	20.44	20.42	20.67
Government (%)	0.1	0.1	0.1	0.1	0.1
Public (%)	4.27	4.58	5.36	5.37	6.31

Profit & Loss Account of NMDC Ltd. (Figures in Rs. Crores) :

	Mar 2018	Mar 2019	Mar 2020	TTM
Sales	11,615	12,153	11,699	11,710
Expenses	5,868	5,229	5,917	5,675
Operating Profit	5,747	6,924	5,782	6,035
OPM	49	57	49	52
Other Income	723	589	637	304
Interest	37	40	10	-9
Depreciation	257	279	295	239
Profit before tax	6,176	7,194	6,114	6,108
Tax	38	36	41	0
Net Profit	3,808	4,618	3,573	3,757

Recommended Read: Learn to Analyse Income Statement of a Company 

Balance Sheet of NMDC Ltd. (Figures in Rs. Crores) :

	Mar 2018	Mar 2019	Mar 2020	Sep 2020
Share Capital	316	306	306	306
Reserves	24,101	25,738	27,367	28,579
Borrowings	500	364	566	524
Other Liabilities	3,774	3,483	3,056	2,964
Total Liabilities	28,691	29,891	31,294	32,373
Fixed Assets	3,457	3,512	3,810	3,754
Capital Work in Progress	12,545	13,819	15,530	15,860
Investments	673	859	910	1,414
Other Assets	12,016	11,701	11,045	11,346
Total Assets	28,691	29,891	31,294	32,373
Inventories	572	666	724	727
Trade Receivables	1,473	1,425	2,224	2,077
Cash & Bank	5,461	4,619	2,437	2,747
Loans and Advances	1,974	2,101	2,588	243
Trade Payables	160	203	226	175

Recommended Read: How to Analyse a Balance Sheet of a Company

NMDC Ltd. Key Financial Ratios :

	March 18	March 19	March 20
Basic EPS (Rs.)	14.70	12.03	12.27
Net Profit Margin (%)	32.76	38.19	30.85
Return on Networth / Equity (%)	13.11	17.88	15.62
Current Ratio (X)	2.63	2.60	2.50
Quick Ratio (X)	2.37	2.38	2.33

NMDC Ltd. Mutual Funds and Holdings :

 

Schemes	Quantity	As on	Prev. Qty	Change (Qty)
CPSE ETF	110,358	30-04-2021	95,577	14,781
ADITYA BIRLA SUN LIFE FLEXI CAP FUND – GROWTH	24,223	30-04-2021	21,321	2,902
KOTAK EQUITY ARBITRAGE FUND – REGULAR PLAN –	13,932	30-04-2021	7,491	6,441
ADITYA BIRLA SUN LIFE ARBITRAGE FUND – GROWTH	4,707	30-04-2021	3,084	1,623
TATA ARBITRAGE FUND REGULAR PLAN GROWTH	4,665	30-04-2021	3,138	1,527
L&T ARBITRAGE OPPORTUNITIES FUND – GROWTH	4,592	30-04-2021	2,957	1,635
ADITYA BIRLA SUN LIFE MIDCAP FUND – GROWTH	4,124	30-04-2021	3,584	540
NIPPON INDIA ARBITRAGE FUND – GROWTH	2,933	30-04-2021	2,313	620
ADITYA BIRLA SUN LIFE PSU EQUITY FUND NORMAL-	2,855	30-04-2021	2,481	374
IDFC ARBITRAGE FUND-REGULAR PLAN- GROWTH	2,682	30-04-2021	554	2,128

Quick Financial Overview of NMDC :

Market Cap (Cr): 52,092	Face Value (₹): 1	EPS (₹): 12.27
Book Value (₹): 102	Roce (%): 29.9	Debt to Equity: 0.02
Stock P/E: 8.3	ROE (%): 21.8	Dividend Yield (%): 4.37
Revenue (Cr): 10,361	Earnings (Cr): 4,859	Cash (Cr): 2,747
Total Debt (Cr): 524	Promoter’s Holdings (%): 69.65

Samco’s Ratings for NMDC Ltd. : NMDC’s Share Page: 3 out of 5 stars (Stock Rating Date: 17th Aug 2021) Check current rating of NMDC Share Price : https://www.samco.in/share-price/nmdc-ltd/NMDC/INE584A01023

NMDC Ltd.’s Pros and Cons:

Pros:  High Pricing Power : The business enjoys relatively high pricing power. The administrative control is able to withstand competitive pressure. The same works as a great moat for equity shareholders of the company. Zero Debt : The company has a negligible debt to equity ratio of 0.02. Thus, the equity shareholders carry lower risk of holding the stock. Cons: Poor Cash Flow Conversion : The business has a very poor cash conversion ratio. Only 33.12% of operating earnings are converted into operating cash flow. This implies that increase in profits has not translated into higher cash flows. Capital Intensive Business : The company operates an extremely capital-intensive business with a low asset turnover of 0.60. This impacts return on equity negatively and reduces shareholder returns. Any growth in the business must be funded either by increasing borrowings or diluting share holding because of it capital-intensive nature. Both of these negatively impacts shareholder value and returns. Visit NMDC Ltd.’s share page to read more about its pros and cons.

Peer Comparison of NMDC Ltd. :

Company	Market Cap (Rs. Cr)	P/E	Roce (%)	ROE (%)	Dividend Yield (%):
NMDC	58,565	15.5	22.6	13.3	3.88
MOIL Ltd	4,462	42.9	11.4	8.31	3.19
AshapuraMinechem Ltd	1,473	3.65	-15.4	0	0
Sandur Manganese & Iron Ores Ltd	1,427	11.1	37.5	23.8	0.56

Visit Samco’s share pages to check the star ratings for every listed company. Search for stocks to get live prices, ratings, valuation, and analysis. Open a FREE Demat account with Samco and experience world-class trading.