Satisfied with our performance in Q1: GP Kundargi, MOIL

In a chat with ET Now, GP Kundargi, CMD, MOIL Ltd, speaks on their Q1 performance. Excerpts:

ET Now: Very few mining companies have shown a rise in operating margins. How have you managed to pull this off?

GP Kundargi: Our performance has been quite satisfactory for the first quarter, based on the overall market condition. Normally our product mix constitutes of high grade and low grade, and we have increased the high grade component in out product mix, thereby getting better realisation and that has added to our bottom line. That is why the PBT has gone up by a 50.32% and PAT is up 12.68%. The operating profit before tax has gone from Rs 95 crore to Rs 108 crore. The other income has also increased from Rs 52 to Rs 61 crore. We have marginally increased the production by 2% and in spite of lesser sales quantity, better sales realisation and product mix, the turnover went marginally down by 1.53%, but PAT increased by 12.68%.



ET Now: What have been the total volumes in realisation in this particular quarter?

GP Kundargi: The average sales realisation in this quarter was Rs 8600 per tonne from April to June.



ET Now: What is the expectation on that front on realisation?

GP Kundargi: Realisation is the same. We have not changed the prices for this quarter. The realisation from manganese ore is Rs 223 crore as against Rs 216 crore in the same quarter last year.

ET Now: Mining revenues have also grown, but sales for manufactured products have halved.

GP Kundargi: Sales for manufactured products depend on the steel industry growth. Exports have been hit badly due to a bad market and European conditions.