market

Mishra Dhatu Nigam shares rally 20%; here's why


NEW DELHI: Shares of Mishra Dhatu Nigam (Midhani) hit upper circuit limit of 20 per cent in Monday’s session after the company in its analyst call on Friday said it expects much higher growth in the March quarter compared with the previous quarters.

Dinesh Kumar Likhi, Chairman and Managing Director of Mishra Dhatu Nigam said, “We expect a much better March quarter. We have good orders from ISRO and the equipment which we modernised two years back are giving good results. Our process and yield have also improved,” Midhani said while adding 60-65 per cent orders will be from space segment for the next three years.

He added that the company is looking to add another Rs 800 crore of orders in near-term. “The company will continue to grow at the same pace next year as well,” he added.

The company on February 12 posted 257.98 per cent year-on-year rise in net profit at Rs 60.50 crore for the quarter ended December 31. It had posted a net profit of Rs 16.90 crore in the same period last year.

Total revenue of the company increased 35 per cent YoY to Rs 206.87 crore in Q3FY20.

Likhi added that capital expenditure will now taper off from 2021-22 onwards. “We feel that capex which was in the range of Rs 200 crore earlier, will be now Rs 100 crore. We don’t require much investment to scale up.” he said.





READ SOURCE

READ  FTSE CLOSE: Ryanair issues profit warning; Eddie Stobart races ahead; City braces for retail sales

Leave a Reply