MOIL Limited: history, ownership, mission, how it works & makes money

A Brief History of MOIL Limited

MOIL Limited, originally known as Manganese Ore (India) Limited, was established in 1962. The company is a premier mining company in India, primarily focused on producing manganese ore, which is vital for steel production. Over the years, MOIL has played a significant role in the Indian manganese industry.

The company has mining leases spread across the states of Madhya Pradesh and Maharashtra, where it operates several mines. As of March 2023, MOIL reported its production capacity at approximately 1.1 million tonnes of manganese ore annually.

In 2010, MOIL was listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), providing it with a platform for raising capital and expanding operations. The Initial Public Offering (IPO) was well-received, with shares priced at ₹340 per share.

As of March 2023, the company’s market capitalization stood at approximately ₹6,500 crores. The continual investment in technology and expansion of mining operations has allowed MOIL to maintain a robust presence in the manganese sector.

MOIL also focuses on sustainable mining practices and corporate social responsibility (CSR) initiatives, which have included community development programs and environmental conservation efforts. In the financial year 2021-2022, the company invested ₹30 crores in various CSR activities.

In the latest earnings report, MOIL showcased an increase in net profit by 25% year-on-year, reaching around ₹525 crores for the fiscal year ending March 2023, aided by a rise in manganese prices and effective cost management measures.

The company benefits from healthy demand for manganese ore in the steel and ferroalloys industries, with prices fluctuating around ₹10,000 to ₹12,000 per tonne in early 2023. This stable pricing environment has bolstered MOIL's revenue projections for the upcoming quarters.

Overall, MOIL Limited has steadily established itself as a leader in the manganese ore industry in India, with a strong emphasis on sustainability and community engagement, ensuring a balanced approach to growth and corporate responsibility.

A Who Owns MOIL Limited

MOIL Limited, formerly known as Manganese Ore (India) Limited, has a diverse ownership structure that includes both public and institutional shareholders. As of September 2023, the major stakeholders are as follows:

The Government of India holds a controlling share of 51.0%, which plays a significant role in the strategic decisions and operational management of the company. This ownership structure facilitates a strong influence on the mining and mineral sector policies, thereby positioning MOIL as a key player in the manganese industry.

In terms of market capitalization, as of late September 2023, MOIL Limited had a market capitalization of approximately ₹ 8,900 crores (about $1.2 billion). The stock has shown a year-to-date performance of approximately 15.4% increase, reflecting growing investor confidence.

According to the latest financial data, for the fiscal year ending March 2023, MOIL reported revenues of ₹ 1,380 crores (approximately $185 million), showing an increase of 14% year-over-year. The net profit for the same period was approximately ₹ 314 crores, a margin of about 22.8%.

The diverse ownership and strong financial performance of MOIL Limited not only highlight its robust operational framework but also its strategic importance amidst India's push for growth in the mining sector.

MOIL Limited Mission Statement

MOIL Limited, a leading producer of manganese ore, emphasizes its commitment to supply high-quality manganese products while ensuring sustainability and social responsibility. The company’s mission statement reflects its core values and operational goals:

• To be the best and leading producer of manganese ore in India.
• To continuously improve operational efficiencies and employee productivity.
• To maintain high standards of safety, environmental management, and corporate governance.
• To contribute positively to the communities surrounding its mining operations.

As of the latest fiscal year 2022-2023, MOIL reported a revenue of ₹1,040 crore, with a significant increase from the previous year's revenue of ₹908 crore, showcasing an annual growth rate of approximately 14.5%.

The operational capacity of MOIL is currently around 1.1 million tonnes per annum. The company operates a total of 11 mines, including 6 underground and 5 opencast mines, with a focus on expanding its mining footprint to enhance production capacity.

In terms of financial performance, for the quarter ended June 30, 2023, MOIL recorded a net profit of ₹220 crore, marking a notable increase compared to ₹185 crore in the same quarter of the previous year. This reflects a year-over-year growth of approximately 18.9%.

MOIL has a robust strategy for community development, with investments exceeding ₹30 crore in various social initiatives in the last fiscal year. These initiatives focus on education, health, and infrastructure improvements in nearby communities.

Moreover, MOIL's commitment to sustainable mining practices is reflected in its annual expenditure on environmental initiatives, which was approximately ₹20 crore in the previous fiscal year. The company aims to minimize its carbon footprint and enhance biodiversity around its mining sites.

In alignment with its mission, MOIL is actively enhancing its technological capabilities. The company has allocated about ₹50 crore for upgrading mining technology and equipment in 2023, ensuring operational efficiency and safety.

Overall, MOIL Limited stands firm in its mission to lead in the manganese sector while fostering development and sustainability initiatives aimed at long-term growth and community welfare.

How MOIL Limited Works

MOIL Limited, formerly known as Manganese Ore (India) Limited, is one of the largest producers of manganese ore in India. The company operates in the mining sector, focusing on the extraction and processing of manganese ores. It plays a pivotal role in the supply chain for the steel and allied industries, where manganese is a critical input.

MOIL's business model revolves around both production and commercialization of manganese. The company derives its revenue primarily through the sale of manganese ore and ferromanganese. As of FY 2022-23, MOIL reported a total revenue of ₹1,509 crores, reflecting a robust growth trajectory.

The following are key operational data points for MOIL Limited:

MOIL operates several mines located predominantly in the central Indian states of Madhya Pradesh and Maharashtra. The company's mining operations are characterized by both underground and opencast mining techniques, which are adapted to the geological conditions of the mining sites.

In FY 2022-23, the company’s mining operations yielded a production of approximately 1.32 million tonnes of manganese ore, contributing to India's overall manganese production. The company has enhanced its production capacity through investments in technology and infrastructure, resulting in improved efficiency and output.

MOIL also emphasizes sustainability and safety in its operations. The company is committed to reducing its environmental footprint while adhering to safety standards. In FY 2022-23, MOIL invested around ₹150 crores in expanding its operational and technological capabilities, focusing on eco-friendly mining practices.

In addition to mining, MOIL has diversified into the production of value-added products. Ferromanganese, a key alloy for steelmaking, represents a significant portion of the company’s revenue stream. The production capacity for ferromanganese was around 40,000 tonnes per annum as of 2023.

Geographically, MOIL's sales are primarily driven by demand from the steel industry, both domestically and internationally. The company exports a portion of its production, with exports accounting for nearly 15% of total sales in FY 2022-23.

To maintain its competitive edge, MOIL employs various strategic initiatives, including technological partnerships and research collaborations, aimed at optimizing the extraction and processing of manganese ores. This strategic focus aids in stabilizing supply amidst fluctuating global demand.

Furthermore, the manganese market is influenced by the price dynamics of steel, as manganese is an essential alloying element. The average selling price of manganese ore has seen an upward trend, facilitating improved margins for MOIL. The average selling price increased from ₹11,500 per MT in FY 2021-22 to ₹12,200 per MT in FY 2022-23.

Overall, MOIL Limited operates through a well-structured model that integrates mining, production, and sales, capitalizing on the growing demand for manganese in the steel industry. The company's strategic initiatives and operational efficiencies position it favorably within the mining sector in India.

How MOIL Limited Makes Money

MOIL Limited, operating primarily in the mining and exploration of manganese ore, has established a robust financial model centered on the extraction and sale of mineral resources. In FY 2022-2023, the company’s total revenue reached approximately ₹1,861 crores, showcasing a notable increase from ₹1,578 crores in FY 2021-2022.

The company's revenue generation is predominantly derived from the sale of manganese ore, which accounts for over 90% of its total earnings. A key factor in this success is the strategic pricing and demand dynamics in the market for manganese, utilized primarily in steelmaking and battery production.

In FY 2022-2023, MOIL's manganese ore production stood at 1.05 million tonnes, with an average selling price per tonne of approximately ₹17,000, reflecting both the global demand and supply constraints within the market. The following table illustrates the revenue breakdown by product categories for the past fiscal year:

MOIL also benefits from cost-efficient mining operations, with low operational costs amounting to approximately ₹6,500 per tonne in FY 2022-2023. This results in substantial profit margins, particularly in a rising price environment.

In addition to the mining of manganese ore, MOIL has diversified into the production of ferro alloys, which contributed to around 5% of total revenues in the same fiscal year. The company produced around 40,000 tonnes of ferro alloys, generating revenue of approximately ₹250 crores.

Moreover, MOIL has implemented several measures to optimize efficiency and enhance its production capabilities. Investment in advanced technologies in mining operations has further positioned the company to respond swiftly to market dynamics, securing its competitive edge.

In terms of financial health, as of March 31, 2023, MOIL reported total assets of approximately ₹7,900 crores and liabilities of around ₹1,000 crores, yielding a healthy debt-to-equity ratio of 0.12. Such financial stability empowers MOIL to invest in future growth initiatives and capital expenditure.

Overall, MOIL Limited's revenue generation strategy hinges on its core competency in manganese mining, complemented by stringent cost control measures and strategic investments in expanding production capabilities.