Ashapura Minechem shares hit a 52-week high at Rs 339 on September 18 after the mining-company announced large volume order-wins to supply bauxite and iron ore to Chinese companies.
In a regulatory filing at the exchanges, the company said,“Ashapura Holdings (UAE) FZE, a step-down subsidiary of the company, has concluded and signed two contracts for the supply of 24 million tonnes of bauxite from Guinea to a subsidiary of the Chinese aluminium major, State Power Investment Corporation. While the first contract entails three million tons per annum supply agreement for three years, the second contract entails three million tons per annum supply agreement for five years.”
“The contract to supply iron ore was signed by Ashapura Guinea Resources SARL, another step-down subsidiary of the company. The iron ore to be mined from Guinea will be supplied to Tai He Mining. The contract entails a supply agreement of 10 million tons of iron ore out of which two million tons per annum of iron ore will be supplied for five years,” the regulatory filing added.
At 11 am on the NSE, the Ashapura Minechem stock was quoting at Rs 334.80 apiece, up Rs 9.40, or 2.89 percent. In year-to-date terms, the stock is up nearly 240 percent.
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In its results for the April-June quarter, Ashapura Minechem reported a 153.23 percent YoY (year-on-year) increase in revenue from operations at Rs 1,018 crore. Net profit for the quarter was up 191.42 percent YoY at Rs 102 crore. However, the operating profit margins for the quarter contracted by 200 basis points on a yearly basis to 11 percent.
Ashapura Minechem is engaged in the business of mining and processing industrial minerals. It specialises in minerals like bentonite, bauxite, and kaolin, catering to various industries such as oil and gas, foundry, and construction.
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