MOIL shares spike 13% as company achieves best-ever February production

Shares of MOIL, the country's largest manganese ore producer, rose by 13% to reach ₹313.40 apiece in today's early trade following the company's February production update. 

In a filing on Saturday, the company announced that it achieved the best-ever February production of 1.51 lakh tonnes of manganese (Mn) ore, marking an increase of 15% year-on-year.

Notably, the cumulative production from April to February 2024 stood at 15.84 lakh tonnes, reflecting 37% year-on-year growth and surpassing any previous fiscal year's production record since the company's inception.

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Furthermore, on the sales front, MOIL reported a significant uptick, with sales reaching 1.56 lakh tonnes in February 2024, marking an 18% increase compared to February 2023. For FY24 up to February, the company achieved sales of 13.91 lakh tonnes, indicating robust 32% year-on-year growth.

MOIL has consistently emphasised exploration efforts, evident in its substantial core drilling activities. As of February 2024, the company had conducted core drilling of 78,922 metres, more than doubling the figures from the previous fiscal year.

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The company 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.

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Looking at the company's financials, the company achieved a production of 12.73 lakh MT of manganese ore in 9MFY24, while it registered sales of 11.01 lakh MT of manganese ore during the first nine months of the current fiscal year, reflecting a growth of 40% YoY. 

Further, the company also achieved record production of Electrolytic Manganese Dioxide (EMD) during the nine months of the current year, registering a growth of 30% YoY. EMD is a 100% import substitution product, used mostly for pharmaceuticals and the manufacturing of batteries.

Revenue from operations during the nine months of FY24 came in at ₹1,033.55 crore, which was 13% higher than the corresponding period of last year. It reported a PAT of ₹203 crore in 9MFY24, a 19.41% jump compared to a PAT of ₹170 crore in 9MFY23.

At 01:00 p.m., the stock was trading with a gain of 9.20% at ₹306.85 apiece.

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