[Ed. Note – This article does not meet our new editorial guidelines, nor does the company mentioned meet our investment criteria. It will be removed from the site in the future.]
NMDC (NSE:NMDC) has entered into the memorandum of understanding with the MOSI OA TUNYA DEVELOPMENT COMPANY of Zimbabwe. The company is under the administrative authority of Ministry of Tourism and Hospitality Industry, Government of Zimbabwe. The executive director, Business Development signed the agreement on behalf of NMDC. Ms. Mukahanana-Sangarwe, who is the chairperson, signed the agreement on behalf of MOSI OATUNYA DEVELOPMENT COMPANY in the presence of the Board Members of NMDC.
The Indian firm is looking forward to enhance their reach and business in the mineral assets out of India in order to attain raw materials from the steel industry. NMDC has been invited by the Ministry of Tourism and Hospitality Industry, Government of Zimbabwe to establish a strategic partnership and put funds in the exploration and development of the iron ore, coal, Gold and chrome tenements. After signing the MoU, NMDC has become a distinctive company in Zimbabwe, which will participate in the mineral projects at Zimbabwe. Mr. C.S. Verma, CMD, NMDC said that the company will take a vital step forward in order to make sure its position in the mineral reserves and also taking its operations global.
The company has paid an interim dividend @300 percent per equity share for the fiscal 2012-2013. The Board of directors have approved the payment of a final dividend @ 400 percent on the paid up equity share capital of the company, which will be subjected to the approval of shareholders.
After payment of the final dividend, the total dividend paid by the company for the year 2012-13 will be @700 percent per equity share. The dividend paid is the highest paid a dividend till now.
For the fourth quarter of fiscal 2012-13, the company has posted record production and sales of iron ore. The production and sales increased 37.5 percent and 28 percent respectively as against fourth quarter of 2011-12. NMDC posted growth of 23.5 percent at 3,204 crore in the turnover of the fourth quarter of fiscal 2012-13 compared to CPLY of Rs 2,595 crore.
For the last quarter of 2012-13, the company earned Profit before tax of Rs 2,245.31 crore. The Profit after Tax came in at Rs 1,464.95 crore as against PBT of Rs 2,439.24 crore and PAT of Rs 1,642.28 crore of corresponding periods of last year, which is a decline of 8 percent and 11 percent respectively.
NMDC is performing dynamically to achieve its growth plans, which are a part of its forward integration programme and value addition. NMDC is building steel plant at Nagarnar in Chhattisgarh, which has the capacity of 3 MPTA. At present, total orders placed are valued at 13,475 crore. The expenditure over this has come in at 2,346 crore. The company has started working on various projects, and it is projected are to be completed by 2015-16.
NMDC is the single largest iron ore producer in India. The company was incorporated in 1958 as a Government of India fully owned public enterprise. At present, the company is capable of producing around 30 million tons of iron ore from 3 mines.