MSTC Q1 Results Total Revenue ₹189.50 Crore & Operating Profit ₹64.23 Crore

MSTC Q1 Results: In the June 2024 quarter, MSTC reported a total revenue of ₹189.50 crores. This is a slight increase of 5.87% compared to the same period last year (June 2023), showing a positive year-over-year (YoY) trend. However, the revenue decreased by 4.81% compared to the previous quarter (March 2023), which reflects a quarter-on-quarter (QoQ) decline. Selling, general, and administrative expenses rose by 18.75% from the previous quarter but fell slightly by 2.61% YoY. Depreciation and amortization expenses increased by 17.63% QoQ and 21.76% YoY, indicating higher costs in these areas.

MSTC’s Other operating expenses were reduced by 4.87% compared to the previous quarter but grew by 9.58% YoY. As a result, total operating expenses increased by 4.14% QoQ and by 6.18% YoY. Despite these higher expenses, operating income rose by 5.26% YoY but fell by 15.74% QoQ. Net income before taxes decreased by 26.17% QoQ, yet it saw a small 1.75% increase YoY. Net income grew significantly by 22.31% YoY, although it declined by 19.56% QoQ. Finally, the diluted normalized earnings per share (EPS) improved by 22.25% YoY, despite a 19.56% decrease compared to the previous quarter.

Here's the MSTC Q1 financial results in simple English:

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MSTC Q1 Results

MSTC earned a total income of ₹8,600.61 lakhs in this quarter. This is a decrease from the ₹10,063.16 lakhs they earned in the same quarter last year (June 30, 2023). The income consists of ₹6,904.49 lakhs from operations and ₹1,696.12 lakhs from other sources. The company's expenses for this quarter were ₹3,153.06 lakhs, which is slightly higher compared to ₹3,006.69 lakhs last year. These expenses include costs for employee benefits, finance, depreciation, and other items.

MSTC's profit before tax was ₹5,447.55 lakhs, down from ₹7,056.47 lakhs a year ago. After paying taxes, which amounted to ₹1,401.89 lakhs for this quarter, the profit reduced to ₹4,045.66 lakhs. This is lower than the ₹4,457.05 lakhs profit from last year. The earnings per share, both basic and diluted, are ₹5.75, which is consistent with the previous quarter. Overall, MSTC's performance shows a decrease in income and profit compared to the previous year.

Here’s a simplified summary of the financial results for the quarter ended June 30, 2024:

MSTC Stock Performance

MSTC’s market cap, which is the total value of all its shares combined, is ₹5,175 Crores. Its current stock price is ₹735. The stock has reached a high of ₹1,165 and a low of ₹396 over a certain period. The Price-to-Earnings (P/E) ratio is 24.0, indicating how much investors are willing to pay per ₹1 of earnings. The book value per share is ₹126, showing the value of the company’s assets per share. The dividend yield is 2.11%, meaning investors earn this percentage in dividends. Return on Capital Employed (ROCE) is 34.6%, and Return on Equity (ROE) is 24.4%, reflecting the company’s efficiency in using capital and generating profit.

Here is a summary of the financial information:

Quarterly Results 

For MSTC, the financial details for December 2023, March 2024, and June 2024 show a mixed performance. In December 2023, MSTC's sales were ₹185 crores with an operating profit of ₹62 crores and a profit margin of 34%. However, in March 2024, sales increased to ₹199 crores, but the company faced a loss in operating profit of ₹33 crores, leading to a negative margin of -17%. By June 2024, sales slightly decreased to ₹190 crores, but operating profit improved to ₹70 crores, resulting in a better margin of 37%. 

Here are the financial details for the periods ending December 2023, March 2024, and June 2024:

About MSTC 

MSTC is a major Indian public sector company, with 64.75% of its shares owned by the Government of India. It is managed by the Ministry of Steel and is known for its diverse e-commerce services. Founded on September 9, 1964, in Kolkata as Metal Scrap Trade Corporation, the company initially focused on exporting metal scrap. 

MSTC became a part of SAIL in 1974 and was involved in importing metal scrap for the Indian government. In 1982, MSTC became a standalone government company and expanded its operations after the 1992 policy changes.

In 2002, MSTC ventured into the digital world by launching its e-Auction platform, making it a key player in B2B e-commerce in India. It has since established itself as a leading provider of e-commerce services. MSTC also entered the recycling industry by partnering with Mahindra Accelo, setting up India’s first Registered Vehicle Scrapping Facility. 

Today, MSTC operates in three main areas: e-commerce, trading, and recycling through its subsidiary, MMRPL. The company’s evolution from scrap trading to e-commerce and recycling highlights its adaptability and growth in various business sectors.