Moil Limited Establishes New Subsidiary for Global Mineral Exploration
Moil Limited's board has approved a new subsidiary in Gujarat aimed at exploring mineral assets internationally, alongside a notable profit increase.
Moil's board approved the establishment of Moil International IFSC Limited in GIFT City, Gujarat.
The company reported a 22.5% increase in net profit for the first half of FY27, reaching Rs14.39 crore.
The new subsidiary aims to enhance overseas mineral asset acquisition and investment management.
Moil Limited's board has recently sanctioned the formation of a wholly owned subsidiary, Moil International IFSC Limited, located in GIFT City, Gujarat. This initiative is focused on exploring and acquiring mineral assets abroad. The decision was made during a board meeting on Monday and is pending government approvals.
The new subsidiary will be fully owned by Moil, which plans to invest Rs2.5 crore by subscribing to 25 lakh equity shares at Rs10 each. According to the company's filing, the subsidiary is designed to facilitate the exploration and development of international mineral asset opportunities, manage overseas investments, and provide structural flexibility for future acquisitions. The proposal has been submitted to the Ministry of Steel, with further approvals required from the Ministry of Corporate Affairs and the International Financial Services Centres Authority.
In its financial performance for the first half of FY27, Moil reported an 8.7% increase in revenue from operations, amounting to Rs740.01 crore, compared to Rs680.8 crore in the previous year. The net profit rose to Rs149.39 crore from Rs121.94 crore. Manganese ore sales increased by 9.67%, totaling 7.78 lakh tonnes, while production saw a slight rise of 1.76%, reaching 9.61 lakh tonnes. However, the September quarter showed a decline in profit after tax, which fell to Rs61.78 crore from Rs70.44 crore year-on-year, despite revenue growth from Rs332.74 crore to Rs369.13 crore.
The board also announced a first interim dividend of Rs2.20 per share, with a record date of November 6 and payment scheduled for November 30. Chairperson and Managing Director V Suresh attributed the company's success to its dedicated workforce, stating that their efforts are fundamental to the company's achievements. He emphasized the importance of strategic planning and optimized mining practices in unlocking efficiencies and highlighted the company's commitment to converting low-grade mining products into high-value assets through its 'Waste to Wealth' initiatives.
Looking forward, V Suresh indicated that Moil Limited is keen on pursuing new growth opportunities, both domestically and internationally, particularly in mining and downstream value addition. The establishment of the new subsidiary is expected to play a crucial role in these future endeavors.
