KIOCL posts net loss of Rs 3.66 cr in Q3 of FY2019-20

KIOCL Limited has posted a net loss of Rs 3.66 crore in the Q3 of financial year 2019-20, the company's financial results showed

New Delhi: KIOCL Limited has posted a net loss of Rs 3.66 crore in the Q3 of financial year 2019-20, the company's financial results showed on Tuesday. Total Revenue earned from operations stood at Rs 478.24 crore against a target of Rs 522.22 crore and cumulative revenue earned by KIOCL was at Rs 1437.88 crore against the target of Rs 1,396.66 crore in Q3 of FY2019-20.

KIOCL's CMD MV Subba Rao stated that during the third quarter, the iron ore market was dull due to poor steel prices both in the domestic and international markets, reduction in capacity utilisation by global steel players, except China, and excess supply of iron ore pellets etc. Due to this, the company made operating loss during October & November 2019. During December 2019, it has shown a substantial improvement in profit. However, even as KIOCL posted losses in the December quarter, it exported the highest percentage of pellets i.e. 82 percent, which is very high in recent years, and earned foreign exchange of Rs 1,138 crore.

Pellet production stood at 5,90,000 tons, despatch was at 6,48,000 tons as against the target of 6,20,000 tons and 6,00,000 tons, respectively. With regard to the forthcoming projects of KIOCL, Rao said that the Forward & Backward Integration at Blast Furnace Unit, ie setting up of 1.8 Lakh tons capacity Coke Oven Plant and 2.0 Lakh Tons capacity Ductile Iron Spun Pipe Plant, has got a clearance from the Ministry of Finance and is now awaiting environmental clearance from the MoEF. Rao also said that the new vertical i.e. exploration of minerals is emerging as a revenue-generating vertical of KIOCL. The company has already received orders for Rs 98 crore and is expecting orders for another Rs 72 crore shortly.

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