Mishra Dhatu Nigam shares soar 10% on record sales in FY21

Shares of Mishra Dhatu Nigam (MIDHANI) rose 10 per cent to Rs 193.70 on the BSE in intra-day trade on Thursday after the company said it has recorded the highest ever provisional sales of Rs 810 crore for the financial year 2020-21 (FY21). The state-owned mining company had posted sales worth Rs 712.88 crore for FY 2019-20 (FY20).

For the January-March quarter (Q4FY21), the company reported a 67 per cent year-on-year (YoY) jump in provisional sales at Rs 346 crore against Rs 207 crore in the corresponding quarter of the previous fiscal. For the first nine months (April-December) of FY21, MIDHANI had posted an 8 per cent YoY decline in sales at Rs 464 crore from Rs 506 crore during the same period of the previous fiscal.

Even with disruption in production activities for about 45 days during Q1 of FY21 due to the Covid-19 pandemic, the company was able to mitigate the impact on production with better planning and execution, MIDHANI said in a statement.

"The continued focus on revenue enhancement and cost reduction has yielded results in FY21. During the year, MIDHANI continued its focus on cost optimisation measures including indigenisation of various components, increasing outsourcing efforts and rationalisation of manpower," it said.

At 02:55 pm, the stock was trading 8 per cent higher at Rs 191.60 on the BSE as compared to a 0.94 per cent rise in the S&P BSE Sensex. The trading volumes on the counter more-than-doubled with a combined 2.6 million equity shares having changed hands on the NSE and BSE so far. The stock had hit a 52-week high of Rs 236.55 on April 14, 2020.