 "MOIL shares jump 3% after production rises 7% in first five months of FY25")
MOIL’s share price gained up to 3.15 per cent at Rs 400.50 per share on the BSE in Wednesday’s intraday deals. MOIL’s stock price shot up after the company on Tuesday reported its highest-ever August production, reaching 1.24 lakh tonnes.
The company achieved a total production of 7.24 lakh tonnes from April to August 2024, marking a 7 per cent increase compared to the same period last year. During this period, MOIL's sales were stable at 5.92 lakh tonnes despite challenging market conditions and volatile international prices, the company said in an exchange filing.
Additionally, MOIL has significantly increased its exploratory core drilling to 46,585 metres, 1.6 times more than the previous year, highlighting its focus on exploration, the company said.
Earlier on September 1, the company reduced prices for several manganese ore and related products. Ferro grades with 44 per cent manganese content saw a 20 per cent price cut, while grades with lower manganese content, SMGR (Mn-30 per cent and Mn-25 per cent), fines, and chemical grades saw a 15 per cent reduction. Additionally, the price of electrolytic manganese dioxide (EMD) decreased from Rs 2,10,000 PMT to Rs 2,05,000 PMT. These changes align pricing with current market conditions for September 2024, the company had said.
Manganese is a transition metal, has diverse industrial applications, especially in stainless steels where it enhances strength, workability, and wear resistance.
MOIL, a Miniratna state-owned company based in Nagpur, India, is the largest producer of manganese ore in the country, holding a 50 per cent market share. The company operates 11 mines in the neighbouring districts of Maharashtra and Madhya Pradesh.
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For the fiscal period ending June 24, the company reported total revenue of Rs 492.84 crore, an 18.51 per cent increase from Rs 428.06 crore in the previous quarter and a 29.79 per cent rise from Rs 379.71 crore in June 2023.
Net income for the period was Rs 152.35 crore, up 67.15 per cent from Rs 80.95 crore in March 2024 and up 75.98 per cent from Rs 86.57 crore in June 2023.
The company has a total market capitalisation of Rs 7,973.57 crore. Its shares are trading at a price to earnings multiple of 22 times with an earning per share of Rs 17.65 per share.
At 12:47 PM; the share price of the company was trading 0.93 per cent higher at Rs 391.85. By comparison, the BSE Sensex was trading 0.45 per cent lower at 82,183 levels.