KIOCL bounces back to prof­itabil­ity

Resource Digest - - CONTENTS -

KIOCL Lim­ited, a flag­ship com­pany un­der the Union Min­istry of Steel with Mini Ratna Cat­e­gory I Sta­tus, was formed on April 2, 1976, for min­ing and ben­e­fi­ci­a­tion of low grade mag­netite iron ore from Ku­dremukh Mines. KIOCL op­er­ated a highly mech­a­nised mine to pro­duce 22.5 mtpa ROM and op­er­ated a ben­e­fi­ci­a­tion plant to pro­duce 7.5 mtpa con­cen­trate (from 38 per cent Fe to 67 per cent Fe) at Ku­dremukh till 31.12.2005. KIOCL is op­er­at­ing its 3.5-mtpa Iron Ore Pel­let Plant and 0.216-mtpa Blast Fur­nace Unit at Man­ga­lore, based on mar­ket re­quire­ments.

The com­pany has de­clared its au­dited fi­nan­cial re­sults for the year 2016-17, which were ap­proved by the Board on 29.05.2017 in New Delhi. A com­pany of­fi­cial stated that FY 2016-17 was a very suc­cess­ful year, dur­ing which the com­pany bounced back from the gloomy sit­u­a­tion of the pre­vi­ous year, achiev­ing pel­let pro­duc­tion of 1.46 mil­lion tonnes com­pared to just 0.100 mil­lion tonnes in 2015-16, thereby record­ing a quan­tum jump. On the dis­patch side, KIOCL achieved a jump of 239 per cent on Y-O-Y ba­sis, with the to­tal pel­let quan­tity dis­patched be­ing 1.387 mil­lion tonne com­pared to 0.409 mil­lion tonne dur­ing 2015-16.

Ad­dress­ing a Press meet on 31.05.2017 at Ban­ga­lore, KIOCL CMD Malay Chat­ter­jee stated that un­der the able lead­er­ship of Min­is­ter of Steel Chaud­hary Biren­der Singh and sup­ported by Steel Sec­re­tary Dr Aruna Sharma, with swift de­ci­sion mak­ing in ex­ploit­ing mar­ket op­por­tu­ni­ties and im­ple­ment­ing the con­cept of ‘Make in In­dia’, KIOCL has achieved top line growth of 353 per cent. It has achieved rev­enue from op­er­a­tions of Rs 929.36 crore 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 crore in the last fi­nan­cial year. This stel­lar per­for­mance is highly com­mend­able as a mer­chant pel­let pro­ducer in the ab­sence of cap­tive mines, lack of Iron ore se­cu­rity as it had in­curred huge lo­gis­tic costs in mov­ing iron ore from Ki­ran­dul-

Bacheli Sec­tor of NMDC to its pel­let plant lo­cated at Man­ga­lore port.

Di­rec­tor (Fi­nance) Swa­pan K Go­rai in­formed the me­dia that the Board of Direc­tors of the com­pany has also rec­om­mended 50 per cent of profit af­ter Tax as div­i­dend for fi­nan­cial year 2016-17. This works out to Re 0.37 per share. It is note­wor­thy that the pro­posed div­i­dend for fis­cal 2016-17 is the high­est div­i­dend de­clared af­ter the clo­sure of its sole cap­tive mine at Ku­dremukh with ef­fect from Jan­uary 1, 2006.

Chat­ter­jee ex­pressed his con­fi­dence in tak­ing the com­pany to sus­tain­abil­ity with the al­lot­ment of iron ore mines at De­vadari Range in Bel­lary Dt un­der the reser­va­tion route by the Kar­nataka govern­ment on the ap­proval of the Union Govern­ment for which the nec­es­sary Gazette No­ti­fi­ca­tion has been is­sued dur­ing the month of Jan­uary 2017 af­ter a spell of 11 years since the clo­sure of its state-of-the-art mine and its ca­pa­bil­ity at Ku­dremukh since De­cem­ber 2005. The com­pany has al­ready pre­pared an ac­tion plan and ini­ti­ated the process of ob­tain­ing the nec­es­sary statu­tory clear­ances.

Chat­ter­jee also il­lus­trated the com­pany’s fi­nan­cial sound­ness and re­it­er­ated var­i­ous mod­els that have been im­ple­mented dur­ing the last few years for at­tain­ing prof­itabil­ity and sus­tain­abil­ity to re­gain its past glory as a core min­ing com­pany un­der the Min­istry of Steel. Some of these are:1. For the last three years, the com­pany has demon­strated its tech­ni­cal abil­ity through im­ple­men­ta­tion of an op­er­a­tion and main­te­nance ver­ti­cal un­der which it has been ex­tend­ing valu­able tech­ni­cal sup­port to sis­ter PSUS viz ii. 1.2 mtpa Pel­let Plant and 1.89 mtpa Ben­e­fi­ci­a­tion plant of NMDC at Don­i­malai, Kar­nataka­op­er­at­ing the Chrome Ore Ben­e­fi­ci­a­tion Plant of Odisha Min­eral Cor­po­ra­tion Ltd, at South Kali­a­pani, Ja­jpur Dist., Odisha iii. Op­er­a­tion & Main­te­nance of Coke Han­dling Sys­tem of

MRPL Man­ga­lore The above ef­forts have re­sulted not only in util­i­sa­tion of the tech­ni­cal sup­port/ man­power in the pel­leti­sa­tion and ben­e­fi­ci­a­tion fields but also in earn­ing of rev­enue for the com­pany to add to its prof­itabil­ity and strengthen its bot­tom line. 2. Di­rec­tor (Com­mer­cial) Subba Rao M V in­formed the me­dia that the com­pany has also im­ple­mented an ex­tremely prof­itable model to in­crease its plant op­er­a­tion and re­duce the loss due to lack of ore se­cu­rity, op­er­at­ing the plant on tolling ba­sis for bet­ter pro­duc­tion ca­pac­ity and util­i­sa­tion of spare ca­pac­ity. Un­der the Make In In­dia pro­gramme, in­ter­na­tional agen­cies have al­ready im­ple­mented pi­lot projects by bring­ing high grade iron ore from South Amer­ica, Iran and other parts of the world and util­is­ing KIOCL’S fa­cil­i­ties, have taken away pel­lets fa­cil­i­tat­ing bet­ter util­i­sa­tion of its plant ca­pac­ity and prof­itabil­ity util­is­ing its man­power 3. The KIOCL CMD elab­o­rated that the com­pany is di­ver­si­fy­ing into the min­eral ex­plo­ration field to in­crease its base in­come, be­sides strength­en­ing the Union Govtern­ment in ex­tend­ing the ex­plo­ration base un­der which it has al­ready gone ahead with G4 level ex­plo­ration un­der NMET in ex­plor­ing an Iron Ore Mine in the State of Tamil Nadu and gold bear­ing ar­eas in the State of Kar­nataka. 4.The CMD also in­formed the me­dia that the com­pany’s blast fur­nace unit with a ca­pac­ity of 2.16 lakh tonnes pig iron, which was put un­der sus­pen­sion since 2009, has been taken for re­pair and the unit is ready for op­er­a­tions for pro­duc­ing foundry grade pig iron. adding to­wards its prof­itabil­ity in the com­ing fi­nan­cial year.

KIOCL LIM­ITED CEL­E­BRATED WORLD EN­VI­RON­MENT DAY IN ITS TRUE SPIRIT AT ITS CORPORATE OF­FICE IN BAN­GA­LORE ON JUNE 5, 2017

WORLD EN­VI­RON­MENT DAY CEL­E­BRATED

KIOCL Ltd cel­e­brated World En­vi­ron­ment Day in its true spirit at its corporate of­fice in Ban­ga­lore on June 5, 2017. Re­call­ing the im­por­tance of the day, Chat­ter­jee said that World En­vi­ron­ment Day’s agenda is to em­power peo­ple to be­come ac­tive agents pro­mot­ing the cause of the en­vi­ron­ment. It is the duty of ev­ery­one to pre­serve the en­vi­ron­ment for our fu­ture gen­er­a­tions. Di­rec­tor (Com­mer­cial) Subb Rao, Di­rec­tor (Fi­nance) S K Go­rai, CVO Vi­jay Ku­mar and se­nior of­fi­cers of the com­pany marked the oc­ca­sion by plant­ing saplings at the KIOCL of­fice premises. On the oc­ca­sion of En­vi­ron­men­tal Day, fruit bear­ing saplings were distributed to the em­ploy­ees.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.