NRDCL saw decrease in profit last year
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.