KIOCL Ltd Registers Profit of Rs.47.93 Cr in FY 2016-17

Team Udayavani, Aug 31, 2017, 3:13 PM IST

Bengaluru: The 41^st annual general meeting of Kudremukh Iron Ore Company Ltd (KIOCL Ltd), a state owned PSU under Ministry of Steel was held on Thursday in Bengaluru. The shareholders adopted the annual accounts for financial year 2016-17 and approved the dividend payment at 50% of year’s profit.

Addressing the shareholders, MV Subba Rao, CMD, highlighted fiscal year 2016-17 performance and said that the company produced 1.460 million tons of pellets, thereby registering a growth of 1360%, year-on-year basis.

On the dispatch front, company sold 1.387 million tons of pellets, a jump of 239% on year-on-year basis. Total sales include export quantity of 0.898 million tons which is almost 65% and balance 0.489 million tons was sold in the domestic market.

Rao stated that due to supportive pricing environment, efficiency in production, swift decision making in exploiting market opportunity and implementing the concept of ‘Make in India’, KIOCL achieved a top line growth of 353% achieving revenue from operations at Rs. 929.36 Crore as compared to Rs.205.57 Crore in 2015-16

The company has turned around during 2016-17 by registering profit after tax of Rs.47.93 crore from a loss of Rs.80.15 crores in the last financial year. The stellar performance is highly commendable since as a merchant pellet producer in the absence of captive mine, lack of Iron ore security, as it had incurred huge logistic cost in moving iron ore from Kirandul-Bacheli Sector of NMDC to its Pellet Plant located at Mangaluru Port.

Rao also stated that they had successfully used the spare capacity of their Pellet Plant for tolling purpose to optimize the production capacity and converted imported ore/ concentrate into pellets and thereby partnered in ‘Make India Vision’.

Rao during his address to the gathering informed the shareholders that they were extensively working to invest in core and new business sector. In the Iron Ore Block, which has been notified by Govt. of Karnataka recently at Bellary sector, KIOCL shall soon be stepping back into mining operation. Mine Plan Preparation for this project is already on way. The EIA/EMP and Environmental Clearance works are also being finalized on priority.

To facilitate trading platform to shareholders of the Company, KIOCL’s Shares has been listed on NSE and BSE with effect from November 29, 2016 and August 22, 2017 respectively. This marks the fulfillment of investors need for creating sustainable value of their investment in the company.