The stock of State-owned manganese-ore mining company MOIL is down by about 12 per cent in the last month. This seems to be largely on account of lower-than-estimated sales volumes and realisations in the December 2018 quarter. Though the total sales volumes were down by 3 per cent Y-o-Y to 8.37 lakh tonne, revenue and operating profit grew at a healthy 11 per cent and 20 per cent to ₹332 crore and ₹185 crore respectively, aided by reduced costs.
Net profit for the quarter stood at ₹120 crore, 16 per cent higher Y-o-Y.
While realisations of non-fines and fines increased 8 per cent and 4 per cent Y-o-Y, it remained flat over the previous quarter. The company has announced price cuts over the last two months across various grades to boost sales in the fourth quarter of FY19. Demand for manganese ore, a key input for steel, will be impacted if the outlook for the latter turns weak.