MOIL gains after board OKs setting up Ferro Alloy plants

MOIL rose 1.28% to Rs 206.20 at 9:44 IST on BSE after the company said its board approved setting up Ferro Alloy plants at Balaghat and Gumgaon for Rs 418.82 crore.

The announcement was made after market hours on Friday, 9 March 2018.

Meanwhile, the S&P BSE Sensex was up 259.21 points, or 0.78% to 33,566.35.

On the BSE, 14,000 shares were traded in the counter so far compared with average daily volumes of 68,000 shares in the past two weeks. The stock had hit a high of Rs 209.35 and a low of Rs 205 so far during the day. The stock hit a 52-week high of Rs 285.50 on 24 October 2017. The stock hit a record low of Rs 147.50 on 25 May 2017.

MOIL said that its board approved setting up Ferro Alloys plant at Balaghat mine. The 50000 MTPA project involves total investment of Rs 263.82 crore and it is expected to be commissioned by the end of calendar year 2021. Further, the board approved setting up Ferro Alloys plant at Gumgaon mine. The 25000 MTPA project involves total investment of Rs 155 crore and it is expected to be commissioned by the end of calendar year 2021. The setting up of the projects is a part of diversification options stipulated in the strategic management plan for the growth of the company.

MOIL's net profit rose 2.3% to Rs 103.79 crore on 15.6% drop in net sales to Rs 299.80 crore in Q3 December 2017 over Q3 December 2016.

MOIL produces and sells different grades of manganese ore. The Government of India holds 56.21% stake in the company as per the shareholding pattern as on 31 December 2017.

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