FY16 PAT to be higher by 25% YoY: MMTC

The launch of the government's gold coins and import of pulses is aiding growth, says Ved Prakash, CMD of MMTC. He says the company is likely to post a higher operating profit in the fourth quarter and FY16 PAT will be higher by 25 percent year-on-year.

The MMTC scrip has risen 24 percent in the last one month. Below is the verbatim transcript of Ved Prakash's interview with Nigel D'Souza on CNBC-TV18.Q: The stock has been on a superb run off late. Any changes in the business, any kind of guidance you can give us in terms of revenue outlook as well for the fourth quarter?A: Two, three major initiatives which have happened. One, the long-term agreement with Japan and Korea which was pending, so we have signed in the month of December for export of iron ore. Second, as you we have launched Indian gold coin. The Prime Minister has launched, that is number two. Third, the government has decided to import pulses to take care of these shortages in the future. These three-four initiatives which we have taken probably has helped us to do better than last year.  Q: All these initiatives you know that you are talking about the gold coin, you are talking about pulses as well what could they mean in terms of revenues and also profitability because I am just taking a look at your numbers you have been given an operating losses over the last few quarters. So, all these initiatives can they give you some kind of a hope in terms of profitability? Can we see a positive operating profit come out in the near future?A: Certainly, during this last quarter we should be doing much better and we should be having an operating profit. Although, we are expecting that net profit as compared to last year it should be more by 20 to 25 percent than last year. So, this is one good silver lining for MMTC. Q: So, 25 percent increase for this financial year is what you are saying?A: Yes, overall put together compared to last year our net profit.   Q: That is because other income is as it is higher by around 50 percent if we just saw the last quarter. Is it because of other income or is it because of your operating profit?A: It is all put together, other income, what I mean is that we give the credit, we sell the gold on long-term, we sell the pulses on long-term. We finance our own seed plant so that is major part of other income. Watch videos for more.