MMTC spurts as India to ship 16.5 MT iron ore to Japan, South Korea

MMTC rose 15.98% to Rs 53.35 at 13:15IST on BSE after the government approved the renewal of agreement for supplying up to 16.5 million tonnes of high grade iron ore to steel plants in Japan and South Korea over three years till March 2018.

Meanwhile, the BSE Sensex was up 166.55 points, or 0.60%, to 27,896.22.

The counter clocked high volumes. On BSE, so far 21 lakh shares were traded in the counter, compared with an average volume of 1.78 lakh shares in the past one quarter.

The stock hit a high of Rs 54 and a low of Rs 46.80 so far during the day. The stock hit a 52-week high of Rs 101.75 on 7 July 2014. The stock hit a 52-week low of Rs 41.50 on 16 June 2015.

The stock had underperformed the market over the past one month till 24 June 2015, falling 10.42% compared with 0.81% fall in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 7.54% as against Sensex's 1.53% fall.

The mid-cap company has an equity capital of Rs 100 crore. Face value per share is Re 1.

The Union Cabinet yesterday, 24 June 2015, gave its approval to renew long term agreement with Japanese and South Korean steel mills for supply of high grade Indian iron ore during the three year period from April 2015 to March 2018. The quantities covered under the agreement will be in the range of 3.8 million tonnes to 5.5 million tonnes per year and will be supplied primarily from the mines of NMDC. The contract will be executed by MMTC. Shares of NMDC were up 0.08% at Rs 117.75.

Iron ore of higher grade have been supplied by India to Japan and South Korea under long term agreements during the last four to five decades. The renewal of long term agreement with Japanese and South Korean steel mills for supply of high grade Indian iron ore will help utilize surplus production of iron ore currently available in India. It will also strengthen Indo-Japanese collaboration in several areas of mutual interest, including technology transfer, joint venture, investment, etc, according to a government statement issued after trading hours yesterday, 24 June 2015.

MMTC's net profit rose 16.04% to Rs 37.98 crore on 20.7% rise in net sales to Rs 5008.11 crore in Q4 March 2015 over Q4 March 2014.

MMTC is a leading international trading company. It is the largest non-oil importer in India. MMTC's diverse trade activities encompass Third Country Trade, Joint Ventures, Link Deals - all modern day tools of international trading.

As at 31 March 2015, the government of India holds 89.93% stake in the firm.

Powered by Capital Market - Live News