The shares of KIOCL Ltd. rallied 12.07% in the early hours of trading on Wednesday. The stock of the government-owned mining company touched its high of Rs 232.90 per share. Formerly known as Kudremukh Iron Ore Company Ltd., KIOCL is a central public sector undertaking under the Ministry of Steel, Government of India.
The rise in the share price comes on the back of heavy volumes. Its stock saw a high volume of 25,455 shares by 10:45 IST on BSE (Bombay Stock Exchange). This is a 5.21 times increase over the two-week average daily volume of 4,890 shares of the company. The stock registered a volume of 2,881 shares in its last trading session.
The performance of KIOCL has been impressive for a month time horizon. It has generated a return of 29.40% in the last month. In a recent development, the state-owned company restarted its Mangalore plant operations on 24 November.
It stopped the production of iron ore pellets when the centre imposed a 45pc duty on iron ore pellet exports. This was done to control domestic prices and secure supplies. The export duty was abolished on 19 November.
KIOCL reported losses of Rs 102 crore in the quarter ending September 2022 (Q2FY23) on revenues of Rs 154 crore only. On a sequential basis, the income declined 58% from Rs 366 crore in the June quarter ending 2022 (Q1FY23). As for the bottom line, it more than doubled from Rs 44 crore in Q1FY23.
Written by Vikalp Mishra
