State-run MOIL today reported a 48 per cent fall in standalone net profit at Rs 47.15 crore for the quarter ended June 30, due to lower offtake of manganese ore and selling price pressures.
The manganese miner had clocked a net profit of Rs 89.88 crore in the year-ago period, it said in a BSE filing.
Total standalone income rose marginally to Rs 183.53 crore in April-June quarter from Rs 182.78 crore during the same quarter a year ago.
Its total expenses were higher at Rs 161.38 crore from Rs 114.25 crore during the period under review.
"The reduction in profits is mainly due to oversupply of manganese ore from international market, leading to lower offtake and pressure on selling prices couples with liquidity crunch at buyer's end," it said.
Exceptional items represent adjustment relating to write down value of inventory of finished goods below cost to net relisable value, as per accounting policy for stock of finished goods, it added.
In June, the firm had announced that it will buyback up to 3.48 crore shares representing 20.72 per cent stake at a price of Rs 248 for an aggregate consideration not exceeding Rs 863.34 crore. Government owns 80 per cent stake in MOIL.
Besides, the firm has chalked out an ambitious expansion strategy with a plan to infuse Rs 1,600 crore over the next five years.
The company is planning to invest Rs 430 crore in mining projects, Rs 300 crore in solar and wind energy, Rs 200 crore in new area development and townships each respectively and Rs 300 crore on procurement of machinery, among others over the next five years.
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