Shares of MOIL, the country's largest manganese ore producer, rose by 9% to reach ₹534.95 apiece in today's early trade following the company's Q1FY25 production update.
In a filing on Tuesday, the company announced that it registered record quarterly sales and production since its inception, with a remarkable growth of 14.5% YoY. The entire organisation aligned together to meet this enhanced market demand, and the impact could be seen in record revenue as well.
This performance was backed by record quarterly production, going up to a level of 4.70 lakh tonnes during Q1FY25, registering a growth of 7.8% YoY. MOIL has also continued its focus on exploration activities and carried out exploratory core drilling of 30,028 meters in the reporting quarter, which is higher by 49% YoY, according to the company's exchange filing.
Shri Ajit Kumar Saxena, CMD of MOIL, mentioned that it was heartening to see the MOIL team continuing the stellar performance rhythm and breaking the myth of first-quarter syndrome. He expressed confidence that the company will continue to maintain this momentum in the coming times.
The company has recently revised the prices of manganese ore and other products. The prices for all Ferro grades of manganese ore with a manganese content of 44% and above have been increased by 2% from the prevailing prices since June 1, 2024, for July 2024.
Conversely, the prices for all other Ferro grades of manganese ore with manganese content below 44% have decreased by 8%. Similarly, prices for all SMGR (Mn-30% and Mn-25%), fines, and chemical grades have also been reduced by 8%. The basic price of Rs. 210,000 per metric ton for EMD will remain unchanged for July 2024, the company stated in its exchange filing dated June 30.
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MOIL stands as the largest producer of manganese ore, commanding a substantial 46% market share in the country and possessing extensive reserves. Of the total 503 million tonnes of manganese ore resources in India, MOIL holds approximately 101 million tonnes, constituting 20% of the share, according to the company's FY23 annual report.
To capitalise on emerging opportunities and meet growing demand, the company has strategically increased investments both domestically and internationally. MOIL is actively developing existing mines and exploring prospects for new ones. Additionally, the company is focusing on acquiring areas surrounding its current mines to establish diversified projects.
The company's shares have surged 70% this year, rising from ₹310 to the current trading price of ₹527.80. They ended CY23 on a strong note with a 92% return. From the stock's 2019 low of ₹85.55, the current price represents a remarkable 517% increase.
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