NRDCL saw de­crease in profit last year

Bhutan Times - - Front Page - Sonam Pen­jor

Nat­u­ral Re­sources De­vel­op­ment Cor­po­ra­tion (NRDCL), the not-for­profit com­pany but fo­cused more on ser­vice de­liv­ery than the fi­nan­cial prof­itabil­ity, the com­pany op­er­ates on its own from the re­turn on the sale of prod­ucts. Since the com­pany does not re­ceive any sub­sidy or grant from the gov­ern­ment or donor agen­cies, the com­pany saw a sub­stan­tial de­crease in its profit af­ter tax in 2014; this is mainly due to losses in­curred from stone crush­ing plants.

The an­nual re­port 2014 states that the profit af­ter the tax in 2014 was Nu.5.846mn as com­pared to Nu.30.833mn in 2013. This was mainly due to the loss of Nu.41.936 mn in­curred from the stone chips oper­a­tions. But with­out in­clud­ing the stones chips, a profit be­fore tax was of Nu. 51.313mn was reg­is­tered from tim­ber and re­lated prod­ucts, sand and stone alone.

The re­port also stated that, the com­pany reg­is­tered a 3 per­cent dropped on in its to­tal rev­enue by Nu.12.48 mn in 2014 from Nu.409.08 mn in 2013 to Nu.396.6 mn in 2014.

Due to down­turn in the coun­try’s econ­omy and con­se­quent slow down of the con­struc­tion sec­tor, the de­mand for the prod­ucts from the com­pany like tim­ber, sand, and stone had de­clined over the past few years and as a re­sult of which pro­duc­tion had to be re­duced in 2014 as com­pared to the pre­vi­ous years, states the re­port.

Nev­er­the­less, with man­date to ex­tract and mar­ket sand and stones at af­ford­able prices in ad­di­tion to tim­ber and to make these re­sources af­ford­able, ac­ces­si­ble and avail­able in the do­mes­tic mar­ket to con­trib­ute to na­tion build­ing, the com­pany will con­tin­ues to work hard in car­ry­ing out its ac­tiv­i­ties and ful­fill­ing its man­dates in the com­ing years.

While, the rev­enue from the sale of tim­ber could earned dur­ing the year 2014 was Nu.258.028mn against the tar­get of Nu.232.529mn as com­pared to rev­enue earn­ing of Nu.283.494mn in 2013. Whereas from the sale of sand, the to­tal rev­enue earned by the com­pany dur­ing the year 2014 was Nu.45.264mn as com­pared to Nu.42.543mn in 2013.

But there is de­crease in the rev­enue earned from the sale of stone in 2014. The rev­enue earned from the sale of stone was only Nu.10.290mn in 2014 as com­pared to Nu.11.513mn in 2013 and from the sale of stone chips; the rev­enue earned was Nu.35.937mn in 2014 as com­pared to Nu.18.943mn in 2013.

The re­port fur­ther states that, de­spite hav­ing the nu­mer­ous chal­lenges that the com­pany had to face dur­ing the year like sale of core prod­ucts like tim­ber, sand and stone had reached an all time low to­gether with the fi­nan­cial per­for­mance of the com­pany, the other im­por­tant achieve­ments dur­ing the year was achieved. For in­stance; in­stal­la­tion of another sand dredg­ing ma­chine at Wang­due to sup­ple­ment sand sup­ply, sand trans­porta­tion sys­tem was in­tro­duced for sand sup­ply from Wang­due, which caters to Thim­phu and nearby Dzongkhags. This was mainly done to con­trol trans­porta­tion cost, which had es­ca­lated adding to the fi­nal cost of the sand, and to re­duce sand prices at des­ti­na­tions and keep it af­ford­able to the gen­eral public.

More­over, in or­der to make sand avail­able to small quan­tity buy­ers, a re­tail sand de­pot was in­tro­duced at Ram­tokto in Thim­phu, states the re­port.

Mean­while, to pre­vent fur­ther loss, mea­sures are in placed such as scal­ing down of op­er­a­tion, ini­ti­at­ing di­a­logues with the quarry op­er­a­tors for ter­mi­na­tion of con­tracts and oth­ers were ini­ti­ated. Fur­ther­more, the Golanti un­der Sam­drupjongkhar was re­lo­cated to Paro to­wards the end of the year to sup­ply ag­gre­gates to the Royal Aca­demic Pro­ject.

The Chief Ex­ec­u­tive Of­fi­cer Karma Dukpa pre­sented the an­nual re­port at the press con­fer­ence last Mon­day along with other DHI com­pa­nies.

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