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AGM: In FY21, NRL increased net worth by Rs 300 cr, paid highest-ever dividend to govt

NRL increased its net worth by nearly Rs 300 crore and paid the government its highest-ever dividend of Rs 6,468 crore on the back of a robust financial performance, said Chairman SC Mishra
AGM: In FY21, NRL increased net worth by Rs 300 cr, paid highest-ever dividend to govt
AGM: In FY21, NRL increased net worth by Rs 300 cr, paid highest-ever dividend to govt

New Delhi: At the 28th Annual General Meeting (AGM) of Numaligarh Refinery Limited (NRL), Chairman SC Mishra said that in FY21 the company increased its net worth by nearly Rs 300 crore and paid the government its highest-ever dividend of Rs 6,468 crore on the back of a robust financial performance. "Higher Crude throughput and increase in overall margins resulted in NRL posting a record net profit of Rs 3,036 crore, an increase of 120 percent over the previous year. The net worth of the company has increased to Rs 5,596 crore as of March 31 as compared to Rs 5,304 crore in the previous year. The outstanding financial performance has also led to the highest ever contribution to the Government exchequer at Rs 6,468 crore," Mishra, who is the Chairman and Managing Director (CMD) of NRL's new promoter Oil India Ltd (OIL), said on Saturday.

The company posted revenue from operations at Rs 18,544 crore, which was higher by 31.77 percent over Rs 14,073 crore in the previous year, primarily on account of higher sales volume. The AGM was presided over by Mishra and was attended by NRL's Managing Director SK Barua and other members of the NRL Board and shareholders of the company. The company has declared the highest ever dividend of 375 percent during the financial year 2020-21 (Rs 37.5 per fully paid equity share of Rs 10 each) which has already been disbursed as an interim dividend during the year.

The financial year 2020-21 ended on a positive note despite innumerable adversities, leveraging on internal strength, adaptability and robust inbuilt systems and procedures, said an official statement.

NRL AGM: Highlight of FY21

The highlight of the financial year 2020-21 was the change in ownership of the company with OIL taking over as a holding company with majority equity shareholding through a share purchase agreement signed on March 25. Commenting on this historic development, Mishra said, ‘I am sure that NRL OIL partnership will be able to achieve tremendous synergy and contribute immensely towards ensuring energy security of the nation and achieve the targets set by the Ministry of Petroleum and Natural Gas. Presence of EIL as a stakeholder will further boost the technical expertise of the company.’

Physical & Marketing Performance

During the FY 2020-21, the refinery processed 2,707 TMT of Crude Oil, a 14 percent increase over the previous year. The company also imported 42 TMT Crude Oil which was processed in the refinery. There was increase in production of HSD by more than 12 percent at 1,809 TMT and MS by 36 percent at 636 TMT over the previous year. The refinery also recorded highest ever Wax production of 47 TMT, 17 percent increase over previous year and highest ever LPG bottling at 57 TMT, an increase of 33 percent over previous year.

Sales volume during the FY 2020-21 was 2,924 TMT an increase of 23.9 percent compared to 2,361 TMT in the previous year. HSD Sales increased to 1,835 TMT against 1,541 TMT in the previous year, while MS Sales during the year was the highest ever at 647 TMT against 458 TMT in the previous year. Wax Sales was also the highest at 48 TMT.

Capital Investment & Projects

The Company continues to assiduously and aggressively pursue major ongoing projects in hand namely, the Numaligarh Refinery Expansion Project, 2G Ethanol Project and India-Bangladesh Friendship Pipeline (IBFPL).

The Numaligarh Refinery Expansion Project (NREP) envisages enhancing capacity of the existing refinery from 3.0 MMTPA to 9.0 MMTPA, constructing a Crude Oil Import Terminal at Paradip port in Odisha and laying of a 1,635 KM long cross country Crude Oil Pipeline from Paradip Port to Numaligarh at a total estimated cost of Rs.28,000 Crore. With this and several other ongoing projects undertaken during the Financial Year 2020-21, NRL recorded the highest ever capital investment Rs 924 crore.

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Digital initiatives

NRL has been a frontrunner in adopting the latest and best practices in information technology. The Financial Year 2020-21 has seen NRL launch a number of noteworthy initiatives. The Paperless Office Solution, AAROHAN was launched in the month of August 2020 and has resulted in total digital transformation of the procurement cycle to be eventually implemented for all business processes of the organization including HR, benefits management and other internal and external processes which are carried out through SAP. Another important development is the commencement of S/4 HANA (High-Performance Analytical Appliance) migration project from December 2020 that would improve performance due to its ability to process data faster with embedded analytical capability. Other initiatives include cloud hosted Digital Capital Project Management Tools, Immersive VR Training for safety and marketing operations etc.

COVID Care through CSR

At a time when the world is fighting the pandemic at every level, NRL joined hands with collectives to extend support in every way possible by ramping up facilities and provisions to tackle the situation. An amount of Rs 36 Crore was earmarked to fight COVID-19; which included creating a 120 bedded COVID care Centre with ICU facilities, setting up of Oxygen plants, setting up Covid centres, free vaccination etc.

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