Shares of Gujarat Mineral Development Corporation Ltd skyrocketed 11% and hit a 52-week high of Rs 502.90 on 9 January after the company received environmental clearance for a capacity expansion plan.

In its regulatory filing, the company said that it has received environmental clearance from the Ministry of Environment, Forest, and Climate Change for its capacity expansion plant from 3 million tonnes per annum to 5 million tonnes per annum of Lignite for Surkha(N) Lignite Mine.

The company added that the Lignite mine is strategically important to the company’s growth trajectory. This expansion not only signifies the increase in production capacity but also the company’s commitment towards sustainability and responsible resource utilisation.

Roopwant Singh, Managing Director of the company, said, “The approval of Environmental Clearance for the capacity expansion of Surkha(N) Lignite Mine is a pivotal moment for GMDC. This project’s success is integral to our overall growth and revenue generation perspective.”

In its quarterly report for July-September, the company reported a 50% year-on-year decrease in its net profit to Rs 75 crore during the quarter from Rs 151 crore reported in the same quarter of the previous fiscal year.

The revenue of the company during the quarter stood at Rs 383 crore, which is a 28% YoY decline from Rs 539 crore reported in the same quarter of the last fiscal year.

At 3:30 pm, the shares of Gujarat Mineral closed 6.57% higher at Rs 481.45 on NSE.