KIOCL bounces back to profitability
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:-
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 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 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.
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
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.
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.
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.