NEW DELHI: Shares of state-run MOIL fell over 7 per cent in Thursday’s trade after the company reported a sharp fall of over 90 per cent in its consolidated net profit at Rs 13.47 crore for March quarter, mainly on account of reduced income.

The company had posted a net profit of Rs 139.63 crore during the same quarter a year ago, MOIL said in a BSE filing.

The stock fell 7 per cent to hit a low of Rs 147.30 on BSE.

“We cut our FY21/22E volumes by 23 per cent/18 per cent but raised our average selling price (ASP) by 5 per cent/10 per cent on a strong price hike in May and normalisation of demand in FY22. We retain Hold, with a target of Rs 160 (Rs 158 earlier) based on 4 times (5 times earlier) March FY22 EV/Ebitda estimates,” Emkay said.

Total income during the quarter under review fell to Rs 282.96 crore from Rs 487.47 crore in the year-ago period.

Total expenses stood at Rs 261.34 crore as compared with Rs 293.48 crore in the year-ago quarter.

The company produces and sells different grades of manganese ore. It operates 10 mines, six of which are located in Nagpur and Bhandara districts of Maharashtra, while four are in Balaghat district of

“We note that the company has declared the final dividend of Rs 3 per share in addition to an interim dividend of Rs 3 per share and also completed the buyback of 20 million shares in FY20, which supports the current valuation,” said Emkay Global.

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