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/stocks/nmdc-ltd-share-price

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
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