MMTC spikes on turnaround

MMTC is amongst the top gainers on the BSE, up currently 8% at Rs.45.50, with an intra day high at Rs.46.20. Its 52-week high and low stands at Rs.68.30 and Rs.38 respectively. Volumes are huge today, exceeding 4 lakh shares compared to two-week average of 1 lakh shares.

The market is happy with the Q2FY16 performance of MMTC. Driven mainly by fertilizers, the company posted a turnaround but on the back of other income. The PSU posted a  very healthy 94% (YoY) jump in net sales at Rs.4885 crore but costs shot up 93%, pushing the company into red at EBIT levels. But the other income of Rs.76 crore v/s Rs.28 crore came to the rescue. It ended the quarter with a net profit of Rs.44 crore v/s loss of Rs.10 crore in previous Q2 and loss of Rs.31 crore in Q1FY16.

The precious metals segment, which contributes 49% to overall revenue posted a loss at EBIT level while fertilizers segment, recorded a 7 times jump in topline and EBIT was up over 4 times.