The Hindu Business Line : Gujarat NRE Coke back in black

Ahmedabad, Aug 1 Gujarat NRE Coke Ltd’s operating profit for the first quarter ended June 30, has gone up by six times to Rs 62.68 crore compared with Rs 10.57 crore in the same period last fiscal.A company press release here said that net sales (income from operations) went up from Rs 64.76 crore to Rs 148.89 crore while PAT was at Rs 42.82 (from a loss of Rs 9.69 crore).

The overall growth income translated to an almost six times rise in the PBIDT to Rs 62.68 crore from Rs 10.57 crore. The profit before tax was up 218 times at Rs 50.21 crore (Rs 0.23 crore).

To pay 15% dividend

The board of directors, which met in Kolkata, also recommended a final dividend of 15 per cent subject to the approval of the shareholders.

The company has benefited from the hardening of freight rates in the spot market as it had long-term contracts in place.

Congestion in the Australian ports also helped streamline operations as the company ships its raw coal from the most un-congested port of Kembla, Mr Arun Kumar Jagatramka, Vice-Chairman and Managing Director, said. Import demand for good quality coking coal in the country alone is expected to surge to 75 million tonnes in 2011-12 (up from 21 million tonnes in 2004-05).

With China imposing an export tax, thereby discouraging wanton export of coke from that country, globally the prices are expected to continue their northward journey.

The per tonne price of good quality (12-12.5 per cent ash) metallurgical coke had increased from $150 in June 2006, to $260 now.

Freight rates have also followed suit taking the landed cost in the country to more than $170, as opposed to NRE, sourcing the same at a composite average cost of $100 per tonne , because of its supply security and long-term freight contracts.

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