The Kudremukh Iron Ore Company Ltd, an NSE, BSE & MSEI listed CPSU under the Ministry of Steel has declared its half-yearly audited financials for the half-year and 2nd Quarter as of 30th September 2020 for the financial year 2020-21 after the approval of its Board of Directors at its Board Meeting held on November 11, 2020, at Bangalore via Video Conference.
Chairman and Managing Director, Shri Subba Rao informed the Board Members that the company had performed well during the first half of the financial year 2020.21 in the midst of the COVID19 pandemic and incessant rains that caused disruption in iron ore supply from Chhattisgarh. The Company has also taken stringent measures to improve profitability for its long-term sustenance.
The increase in Profit was due to the increase in pellet prices during the second quarter.
The Profit After Tax (PAT) for the second quarter was Rs: 31.32 cr, an increase of 669% over the same period of the previous year. There was an increase in the total revenue of 26%. It stood at Rs: 486.44 Crores.
According to a media release issued by S. Murgesh. Sr. Manager HR & A, the highlights of the performance of the first half of the financial year 2020 21 are as under:
- PBT of Rs: 61.13 Cr, as against Rs: 33.90 Cr for the corresponding period of the previous year – an increase of 80.32%
- PAT of Rs. 43.34 Cr as against Rs. 20.71 Crores during the corresponding period of the previous year – an increase of 109%
- Revenue from operations was Rs.897.63 Crores, a drop by 6.5% as against Rs.959.66Crores achieved during the corresponding period of the previous year
- Pellet Production was 1.007 Million Tons & Despatch 1.121 Million Tons as against 1.115 Million Tons of Production &1.111 Million Tons of Despatch during the corresponding period of the previous year.
- Total Revenue earned is Rs. 947.02 Crores as against Rs. 1,012.71 Crores for the FY 2019-20.
Further, the Company is continuously exploring new markets for the sale of pellets as well as raw material sources for cost-effectiveness from both domestic and international markets.
Despite the lockdown that was imposed due to the COVID-19 pandemic, exploration works offered by Govt. of Karnataka and the National Mineral Exploration Trust are continuing as per the schedule. Recently, exploration activities have started at Reddipalyam, Tamil Nadu for G3 level, and in Bagalkot district of Karnataka for G4 level for establishing the Limestone reserves.
Regarding diversification plans of KIOCL, a Solar Power Plant is expected to be commissioned shortly. Project work for installing Vertical Pressure filters at the Pellet plant has just started. BFU integration projects such as DISP and Coke oven are at the tendering stage according to the Media Release.