Nagpur, Sep 28 (UNI) The public sector Manganese Ore India Limited (MOIL), the country's largest producer of manganese ore, a vital raw material for steel manufacturing, has doubled its profits during the first half of the current financial year as compared to last year.
Speaking to reporters here today, MOIL Chairman-cum-Managing Director (CMD) K L Mehrotra said that the company had posted a profit after tax (PAT) of Rs 110.41 crore between April and September 2007, which was 119.02 per cent higher than Rs 50.41 crore posted during the same period last year. The company's profit before tax (PBT) showed a growth of 120.12 per cent during the period, up from Rs 75.99 crore last year to Rs 167.27 crore this year, he said.
This was due to an increase in production from 4.16 lakh tonnes to 5.74 lakh tonnes (up 37.94 per cent) and in sales from 5.33 lakh tonnes to 6.12 lakh tonnes (up 14.79 per cent) during the period, Mr Mehrotra said. MOIL earned a total income of Rs 314.86 crore during the first six months of FY 07-08, thus posting an increase of 59.21 per cent over Rs 197.76 crore earned in the same period during the previous year, he said.
Incidentally, in 2006-2007, the company's total income was Rs 451.53 crore, PBT Rs 201.15 crore and PAT Rs 134.21, the CMD said.
The company's 5 megawatt (MW) windmill park at Nagda Hills near Dewas in Madhya Pradesh, erected at a cost of Rs 22.20 crore, had generated 12.0 million units of electricity during the first year as against the rated capacity of 9.6 million units, Mr Mehrotra said. Encouraged by the success, MOIL has decided to expand the park's capacity by 15 MW, which was expected to be commissioned by December this year, he said. The windmill park had resulted in a saving of Rs 4.5 crore per annum in lower electricity bills, he said.
Replying to questions, Mr Mehrotra said that there was neither any possibility of the disinvestment of the government's stake in MOIL, nor any plans for an IPO (Initial Public Offering). However, the board had recommended a scheme of ESOP (employee share options), for which the government's approval was awaited, he said. MOIL planned to offer up to 10 per cent of its authorised share capital to employees, he said.
The company issued bonus shares last year in the proportion of 1:1 to all the three shareholders - the Government of India, and the state governments of Maharashtra and Madhya Pradesh, thus increasing the paid-up capital from Rs 15.33 crore to Rs 28 crore, he said.
MOIL's authorised share capital was recently increased to Rs 100 crore to help it finance its expansion and diversification plans, he added.
MOIL is a public sector undertaking with the Government of India holding shares worth Rs 22.84 crore (81.57 per cent), the Government of Maharashtra Rs 2.69 crore (9.62 per cent) and the Government of Madhya Pradesh Rs 2.47 crore (8.81 per cent). It paid a dividend of 130 per cent for 2005-2006, the highest ever, and 100 per cent on the enhanced capital for 2006-2007. It accounts for 55 per cent of the total production of manganese ore in the country.