Shares of Ashapura Minechem hit a 52-week high of Rs 339 on 18 September after the company announced large volume order wins for bauxite and iron ore supply to Chinese companies.
The company said in its regulatory filing that its step-down subsidiary company, Ashapura Holdings (UAE) FZE, had signed two contracts to supply 24 million tonnes of bauxite from Guinea to a Chinese aluminium major State Power Investment Corporation subsidiary.
The company added, “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 company added, “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 company is majorly engaged in mining and processing industrial materials, specialising in minerals like bentonite, bauxite, and kaolin, and caters to various industries, including foundry, oil and gas, and construction.
In its quarterly report for the April-June quarter, the company reported a 153.23% YoY increase in its revenue from operations at Rs 1,018 crore and a 191.42% YoY increase in its net profit at Rs 102 crore.