Shares of MOIL, India’s largest manganese ore producer, jumped 9% to ₹534.95 in early trading today after a strong Q1FY25 production update.
On Tuesday, the company reported record sales and production for the quarter, marking a 14.5% year-on-year increase. The whole team worked together to meet the higher market demand, leading to record revenue.
MOIL achieved a record quarterly production of 4.70 lakh tonnes in Q1FY25, up 7.8% year-on-year. The company also increased its exploration activities, drilling 30,028 meters, which is 49% more than last year.
Ajit Kumar Saxena, CMD of MOIL, praised the team for maintaining strong performance and expressed confidence that this momentum would continue.
Recently, MOIL revised the prices of its manganese ore and other products. As of July 2024, the prices for manganese ore with 44% or higher manganese content rose by 2%, while prices for ore with less than 44% manganese content dropped by 8%. Prices for fines, SMGR, and chemical grades also decreased by 8%, but the price for EMD remained unchanged.
MOIL holds a significant 46% market share in India’s manganese ore industry, with extensive reserves. Of India’s 503 million tonnes of manganese ore resources, MOIL controls about 101 million tonnes, or 20%.
To meet growing demand, MOIL is increasing investments both domestically and internationally. The company is developing existing mines and exploring new ones, while also looking to acquire areas near its current mines.
This year, MOIL’s shares have surged 70%, rising from ₹310 to ₹527.80. They ended last year with a 92% return. Since hitting a low of ₹85.55 in 2019, the stock has increased by 517%.
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