MOIL signs MoU with Ministry of Steel

Government-owned miniratna company MOIL has signed a Memorandum of Understanding (MoU) with the Ministry of Steel, India and where it has set a production target of 14.75 lac tonnes of manganese ore for FY20E. The company is likely to incur capex of around Rs. 210 crore. During FY18, the company clocked production of 13 lakh MT, thus, this production target translates into healthy 13.5 per cent yoy for FY20E.

At present, MOIL has strong 34 per cent of manganese ore reserves of the country and is contributing 50 per cent to domestic production. In the last fiscal, the company recorded the highest-ever turnover of Rs. 1,441 crore, registering a growth of 9 per cent yoy. In April 2019, the company had taken a price hike for manganese ore.

MOIL has a strong balance sheet with cash and cash equivalents of Rs. 2,261.92 crore as on FY19 which represents nearly 53.4 per cent of today’s market capitalisation.

The stock of MOIL surged nearly 4.6 per cent to touch an intra-day high of Rs. 160. At 11:30 hours the stock was trading at Rs. 157.2 apiece, up by around 2.8 per cent from its previous close.