Expect demand to be good this financial year: MOIL

State-owned MOIL's net profit dropped by 8.81% year-on-year to Rs 99.4 crore in the first quarter of FY13.

In an interview to CNBC-TV18, KJ Singh, chairman and managing director of MOIL says, he expects the demand to be good this financial year.

Below is the edited transcript of his interview with CNBC-TV18's Latha Venkatesh and Ekta Batra.

Q: Can you take us through the quarter? You did see subdued demand from steel companies. How the demand picture was? How it is panning out in the current quarter?

A: The Q1 result of 2012-13 has been very good. Our production has been 2,47,000. In the Q1 of last year, it was only 2,39,000. Our turnover has increased by 15%. Our turnover is Rs 242 crore in place of Rs 210 crore. Our net profit is about Rs 99 crore, whereas the net profit for Q1 of the last year was Rs 108 crore.

Q: How is demand looking from the steel companies for the remaining part of fiscal? How much of an outlook can you provide for future demand at this point?

A: Now that the prices are firming up, we are finding good demand. This year demand was three times the quantity we have offered. So, we are expecting very good demand for Q2 as well.

In Q1, we increased the price from 10.5-12.5%. This quarter also we have increased the price. So, prices are firming. We are finding very good demand for manganese ore.

Q: What about sales?

A: In the year ago quarter, it was 2,21,000 metric tonne. In this quarter, it is 3,15,000 metric tonne, almost 40% increase in sales quantity.

Q: How do you expect it for the rest of the year?

A: Atleast demand will be 30-40% more than this year.

Q: Can you highlight where exactly are you seeing maximum demand coming from? Where are your maximum supply orders, possibly in next quarter or at least two quarters?

A: Our maximum supply goes to SAIL. About 25-30% goes to Mineral Exploration Corporation Limited (MECL) and the balance goes to Durgapur and Raipur. Thirdly, it goes to Vishakhapatnam.

Q: What is your outlook on Manganese ore prices in particular for the remaining part of the fiscal?|

A: In this quarter, we have increased our prices from 12.5% to 15%. Last quarter, we had increased from 10% to 12.5%.

Q: Do you not notice any fall in demand or sluggishness in demand from steel companies?

A: Today, in steel, we don’t notice any sluggish in demand.

Q: Is there sluggishness from any other quarter?

A: We expect the demand will be good this financial year.