KIOCL posts loss of Rs 3.66 crore in 3rd quarter

Poor steel prices both in domestic and international markets, reduction in capacity utilization by global steel players except China, excess supply of iron ore pellets, etc saw KIOCL Limited report operational loss during October and November. While KIOCL showed a major improvement in profit in December, it registered a loss of Rs 3.66 crore in the third quarter of 2019-20, KIOCL Ltd MD M V Subba Rao said.

The total revenue earned from operations stood at Rs 478.24 crore during the quarter against the target of 522.22 crore and cumulative revenue is Rs 1,437.88 crore against the target of Rs 1,396.66 crore.

The pellet production for the third quarter was 5.90 lakh tonne, dispatch was 6.48 lakh tonne as against the target of 6.20 lakh tonne and 6 lakh tonne respectively.

However, KIOCL exported 82 % of pellets, which is high in recent years and earned foreign exchange of Rs 1,138 crore, he said.

On the future projects, he said that the forward and backward integration at Blast Furnace Unit i.e, setting up of 1.8-lakh tonne capacity Coke Oven Plant and two-lakh tonne capacity ductile iron spun pipe plant, the Ministry of Finance, government of India has given clearance for this project and is waiting for environmental clearance from MoEF.

Rao said the new vertical that is exploration of minerals is emerging as a revenue generating vertical for the company that has already received orders for Rs 98 crore and expecting orders for another Rs 72 crore
shortly.

Rao also said that the statutory clearance for starting mining operations at Devadari mines are under process and we are interacting frequently with highest authorities of state for getting clearances so that mining operation can be planned accordingly.