MOILQ2 FY24
MOIL Q2 FY24 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹245P/E: 16.4Market Cap: ₹5.0K CrSector: Minerals & Mining
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
N/A
Order
N/A
Capex
Yes
1 of 3 growth signals are positive — mixed outlook.
Full analysisRevenue guidance
Category 2- MOIL is targeting a record production growth of around 28% to 30% for the current year, aiming to reach approximately 1.7 to 1.75 million tons.
- Next year, a conservative volume growth of 20%+ is expected.
- Longer-term plans include ramping production beyond 3 million tons by 2030, including new joint ventures like GMDC.
- Expansion projects and enhancement of environmental clearances (EC) are underway to support the growth.
- The company sees strong domestic demand given India’s consumption (~7 million tons) outpacing production (~2.8-2.9 million tons).
- Sales growth has been robust, with sales registering a 54% increase over the previous year.
- The EBITDA margin is around 34%, and efforts continue to maintain profitability despite price fluctuations.
- MOIL is also exploring diversification into new areas like lithium mining through partnerships.
See what MOIL management said on margin guidance — free account, 30 seconds.
Fundraise plans
- From the transcript provided, there is no explicit mention of any current or planned fundraising through debt or equity by MOIL Limited.
- The management discusses capex plans funded through existing operating cash flows, indicating that current cash resources are expected to suffice for planned capital expenditures.
- Ajit Saxena mentions cash lying on the balance sheet but does not specify plans for raising additional funds via debt or equity.
- The company is focusing on capacity expansion, exploration, and joint ventures, but funding for these initiatives appears to be from internal accruals rather than external fundraising.
- There is no reference to upcoming equity issuance, debt raising, or related financial instruments in the Q&A or management discussion.
See what MOIL management said on order book — free account, 30 seconds.
Capex plans
Yes- MOIL is focusing on capacity expansion with a planned capex of INR295 crores for FY24, with around INR142 crores already spent.
- Capex targets are about 20% higher than last year (which was INR245 crores), indicating increased investment.
- Expansion projects include enhancing hoisting capacity at underground mines (Ukwa, Balaghat, Gumgaon).
- Chikla mine’s capacity doubled from 1.8 lakh tons to 4 lakh tons after receiving environmental clearance.
- MOIL is entering joint ventures (JV) for new mines, notably a 50-50 JV with GMDC for a mine with 9.5 million tons reserves, expected to start production initially at 0.2 million tons/year.
- MOIL plans further JVs with MPSMC and CMDC in other states, focusing on exploration and potential mining.
- Long-term capex will focus on sustainable growth and reducing dependency on imports by increasing domestic manganese production to meet the rising demand (from 7 million to 11 million tons).
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Margin guidance
Category 3- MOIL is targeting around 30% production growth this year, aiming for approximately 1.7 to 1.75 million tons of manganese ore, the highest in its history.
- Next year, the company expects a 20%+ growth in production, potentially reaching 2.2 to 2.3 million tons with added assets like GMDC.
- EBITDA margin currently stands around 34%, with efforts to maintain profitability despite price fluctuations by controlling costs.
- Production growth and efficiency enhancements are driving EBITDA and PAT improvements, with sales registering a 54% growth over the previous year.
- The company is focused on capacity expansion, exploration, and environmental clearances to sustain and increase production.
- Management expresses confidence in achieving these growth targets due to better operational management and continuous exploration.
- Long-term plans include joint ventures and expansion into new geographies, supporting steady future earnings growth.
Order book
The transcript does not explicitly mention any details about the current or expected order book or pending orders for MOIL Limited. Instead, the discussion focuses primarily on production capacity, mine life, exploration plans, joint ventures, and growth targets. Key points relevant to order or project progress include:
- MOIL aims for significant production growth (around 30% this year, 20%+ next year) with current assets.
- Exploration and capacity expansion are ongoing, including potential joint ventures with GMDC, MPSMC, and CMDC.
- The GMDC joint venture is expected to begin production gradually, with 0.2 million tons planned the first year.
- Expansion involves increasing environmental clearance (EC) limits and supporting infrastructure, which take years.
- No direct mention of order book, pending orders, or contracts in the transcript.
Hence, no clear data on orderbook or pending orders is available in the provided document.
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