MMTC profits to grow 40% on gold imports
Rising prices that have led gold to emerge as the most sought after investment destination has brought cheer to traders in the precious metal.
Mineral and Metal Trading Corporation (MMTC), which will announce its fourth quarter and annual results on April 23, expects a growth of around 40 per cent in its revenue for the financial year 2008-09. Gold contributed roughly 55 per cent to MMTC’s revenues. The company has credited its growth to imports and sale of gold.
Gold prices rose by over 30 per cent in the fiscal 2009. Having corrected by around 10 per cent they are still up 20 per cent over the past one year.
Rise in demand along with a significant rise in gold prices has resulted to this gain for MMTC.
“High gold prices did not impact our imports as we tried to offset the price impact by reducing service charges amongst others. We expect our topline to have grown by about 40 per cent in the financial year 2008-09,” said Sanjiv Batra, chairman and managing director at MMTC. “Gold, silverware and thermal coal imports are contributing to our growth.”
The outlook for gold remains positive, “While gold remains positive on the pricing front for the investors, the consumer interest increases as an investment option increases and that happened with gold,” said Keyur Shah, Associate Director, World Gold Council.
The gain however would not be the same for all traders, “It would depend on the traders penetration and marketability,” said Shah.
MMTC has already imported 6 tonnes of gold this month and expects to import another 3-4 tonnes by the end of the month.