MOIL Limited (NSE: MOIL, BSE: 533286), a Government of India Enterprise, has reported a significant downturn in its financial performance for the first quarter. The company's Board of Directors approved the unaudited financial results in a meeting held on July 30.

Revenue Contraction

MOIL's revenue for Q1 stood at ₹3.40 billion, marking a substantial decrease from ₹4.90 billion reported in the corresponding quarter of the previous year. This represents a year-over-year decline of approximately 30.61% in the company's top line.

Profitability Metrics

The company's profitability metrics showed a sharp decline across the board:

EBITDA and Margin Compression

MOIL's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) experienced a sharp decline, falling to ₹0.79 billion from ₹2.10 billion in the same period last year. This represents a significant drop of about 62.38% year-over-year.

The EBITDA margin also contracted substantially, decreasing to 23.24% from 42.86% in the previous year's corresponding quarter. This 19.62 percentage point reduction in EBITDA margin indicates considerable pressure on the company's operational efficiency.

Net Profit Decline

The bottom line of MOIL was severely impacted, with net profit decreasing to ₹0.52 billion from ₹1.50 billion in the year-ago period. This translates to a substantial decline of approximately 65.33% in net profit year-over-year.

Compliance and Disclosure

In compliance with SEBI (LODR) Regulations 2015, MOIL has submitted its unaudited financial results to the National Stock Exchange of India Ltd and the Bombay Stock Exchange Limited. The company has also stated that it will arrange for the publication of these results in newspapers, as per regulatory requirements.

The financial results were approved in a board meeting that commenced at 11:00 hours and concluded at 14:20 hours on July 30.

Investors and stakeholders may need to closely monitor MOIL's performance in the coming quarters to assess whether this decline is a temporary setback or indicative of broader challenges facing the company.

The Indian government is exploring a strategic divestment in MOIL Limited , a state-owned manganese ore mining company, as part of its broader initiative to unlock value in Central Public Sector Enterprises (CPSEs). The proposed stake sale could see the government diluting its shareholding by up to 10% in the mining giant.

Divestment Strategy

The planned stake sale in MOIL aligns with the government's ongoing efforts to streamline its portfolio of public sector enterprises and generate revenue. This move is part of a larger strategy to optimize the performance and value of CPSEs across various sectors.

Potential Impact

If implemented, this divestment could:

• Increase public participation in MOIL's ownership
• Potentially improve the company's market liquidity
• Contribute to the government's disinvestment targets

About MOIL

MOIL Limited, formerly known as Manganese Ore India Limited, is India's largest producer of manganese ore. The company plays a crucial role in meeting the country's requirement for manganese, an essential raw material for steel production.

While the exact timeline and details of the stake sale are yet to be announced, this development signals the government's commitment to its disinvestment program and could potentially reshape the ownership structure of one of India's key mining enterprises.