The share price of Mishra Dhatu Nigam (MIDHANI) slipped more than 6% to Rs 204.50 on reporting dismal quarterly earnings performance.
The company’s standalone net profit tumbled 49.70% to Rs 40.38 crore on 39.47% fall in total revenue from operations to Rs 203.63 crore in Q4 March 2020 over Q4 March 2019.
Profit before tax (PBT) slumped 51.50% to Rs 55.70 crore in Q4 FY20 over Q4 FY19. Tax expense declined 55.70% to Rs 15.31 crore in Q4 FY20 over Q4 FY19. The Q4 result was declared after market hours yesterday, 30 June 2020. The board has recommended a final dividend of Rs 1.56 per equity share for the year ended 31 March 2020.
The spread of COVID-19 pandemic and subsequent lockdown in the last week of March 2020, has affected final inspection, certification, shipment of materials on account of supply chain disruptions, restrictive movements has impacted the company’s turnover.
MIDHANI is one of the leading manufacturers of superalloys, titanium & titanium alloys, special purpose steels and other special alloys. The Government of India held 74% stake in the company as of 31 March 2020.
The Hyderabad-based company has been roped in to supply Ultra High Strength Steel and Cobalt alloy for the country’s first indigenous manned mission to space, Gaganyaan.
MIDHANI and state-run NALCO have jointly incorporated a new joint venture company, Utkarsha Aluminium Dhatu Nigam on 21 August 2019 for setting up high-end aluminium alloy production plant at Nellore, Andhra Pradesh. The joint venture (JV) company has not started its operations.
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