KIOCL’s net profit zooms to Rs 301.17 crore in FY 2020-21, a record 593% growth

• Steel PSU KIOCL posts massive performance for the FY' 2020-21

• KIOCL posted a net profit of Rs 301.17 crores against Rs 43.48 crores in the previous financial year

• KIOCL Board of Directors has recommended a dividend of Rs 1.64 paisa per equity share

New Delhi: The Board of KIOCL Limited, a CPSU under the Ministry of Steel, approved the financial results for the fourth quarter (Q4 FY'21) and for the previous financial year (FY 2019-20) ended on March 31 on Thursday. During FY 2020-21, KIOCL continued its march in ramping up the financial performance and reported the highest turnover largely due to better sales realisation and strong growth in Q4.

Performance highlight for the financial year 2020-21

During the financial year 2020-21, KIOCL has registered a 593 percent increase in the net profit of Rs 301.17 crores against Rs 43.48 crores that was recorded in the FY 2019-20. The total revenue earned by the steel PSU is Rs 2,477.83 crores as against Rs 2,056.53 crores, which was earned a year back in FY 2019-20, thus registering a growth of 20.49 percent. The company has also registered a 544 percent growth in profit before tax of Rs 410.23 crores as against Rs 63.68 crores in FY 2019-20.

During the same period the KIOCL has achieved the pellet production of 2.21 million tons (MT) as against 2.37 MT produced in the previous financial year and dispatches figures have also touched 2.311 MT as against 2.356 MT in the previous financial year. Export of Pellets 1.84 Million Tons & Domestic sales 0.46 Million Tons respectively. 

Performance highlights for Q4 FY21

During the 4th quarter (Q4 FY21), the KIOCL posted a net profit of Rs 194 crores after tax as against Rs 26.44 crores, revenue from operations Rs 939.71 crores as against Rs 499.75 crores earned during FY 2019-20.

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KIOCL's CMD MV Subba Rao informed that the company's financial performance for FY'21 was strong due to high sales realisation and adoption of cost control measures. He also stated that despite tough challenges caused by the worst-ever pandemic, production activities continued uninterruptedly with the teamwork of its dedicated employees, guidance from the Board and the Ministry of Steel. He also mentioned that the company is expected to achieve MOU ratings of above 80 percent. Marginal drop in production was mainly due to disturbance like severe rains, poor visibility at sourcing point of Iron Ore Fines which resulted in short supply of raw materials.

The Board of Directors has recommended a dividend of Rs 1.64 paisa per equity share, subject to the approval of the shareholders at the Annual General Meeting. The total dividend for the financial year ended March 31, 2021, amounts to Rs.99.67 crores, thereby distributing the dividend as 33.09 percent of the profit after tax (PAT).

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