State-owned MOIL’s Q4 net profit declines 79%

The Dollar Business Bureau

The Nagpur-based manganese-ore mining company, MOIL, reported a 79 percent decline in its standalone net profit valuing at Rs.21.38 crore for the quarter ended March 2015-16.

However, the overall standalone revenue increased by 30 percent to Rs.209.62 crore in the quarter ended March 31, 2016 compared to Rs.161.74 crore in the same period a year earlier.

In a BSE filing on Wednesday, the company revealed that the net profit in Q4 of the fiscal 2014-15 was Rs.102.47 crore.

Due to higher provisions for retirement benefits, royalty and district mineral foundation payments, the company’s expenses have increased to Rs.249.73 crore in Q4 of FY16 as compared to Rs.102.58 crore incurred in the same quarter in FY15.

In FY16, the manganese-ore producer’s net profits plunged to Rs.173 crore from Rs.428 crore in FY15. The annual turnover of FY16 was also low at Rs.628.74 crore against Rs.823.25 crore reported in FY15.

The company, in the BSE filing, stated that the reason behind the low annual turnover and decline in profits was due to overflow of manganese ore from overseas markets, which led to low offtake and pressure on selling costs.

MOIL works on 10 mines, out of which, six are located in Maharashtra and four in Balaghat of Madhya Pradesh.

Seven out of ten are underground mines while the remaining are opencast mines. The mine at Balaghat is the deepest underground mine for manganese in Asian region.

The Government of India owns 81.8 percent shares of MOIL, the state governments of Maharashtra and Madhya Pradesh hold 9.62 percent and 8.81 percent of shares, respectively.

The firm, which is a Miniratna Category I manganese-ore mining company, is among the top 500 companies in the country.

Originally incorporated as Manganese Ore (India) Limited in 1962, the name of the company was subsequently changed to MOIL Limited during the financial year 2010-11.