KIOCL posts 15.68% rise in total revenue in Q2 of FY2019-20

New Delhi: KIOCL Limited, a NSE, BSE and MSEI listed CPSU under the Ministry of Steel, declared its Q2 financial results for the year 2019-20. In its board meeting held on November 14 in New Delhi, the board of directors of the company approved its first half-yearly financial results for the Financial Year 2019-20.

The highlights of First half-yearly performance of FY 2019-20 are as under:

• Pellet production 1.115 million tons and despatch 1.111 million tons as against 0.924 million tons of production and 0.987 million tons of despatch during the corresponding period of the previous year.
• The total revenue earned is Rs 1012.71 crores as against Rs 875.42 crores in the FY 2018-19, registered growth of 15.68 percent.
• PBT of Rs 33.90 crores as against Rs 59.12 crores achieved in the year before.
• PAT of Rs 20.71 crores as against Rs. 45.89 crores during the corresponding period of previous year.
• Revenue from operations was Rs 959.66 crores as against Rs 818.60 crores in the year before, up by 17.23 percent.

While speaking KIOCL's CMD MV Subba Rao stated that the increase in revenue from operations was due to the pellet supplies to middle east countries, a new market that has helped to increase the sales volume and turnover.

He also specified that due to the severe drop in global steel as well as pellet prices, the company's profitability has been affected. The company is continuing to procure iron ore from different sources to reduce input raw material cost.

Further, the company is continuously exploring new markets for the sale of pellets as well as raw material sources for cost-effectiveness. The company is actively carrying out mineral exploration activities in the state of Karnataka with funding from NMET (National Mineral Exploration Trust) and also from the government of Karnataka. Getting statutory clearances for the proposed CAPEX viz; setting up forward and backward projects at BFU, Mangaluru, development of Devadari Iron Ore Mines, setting up of 5 MW solar power plants are under process.

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