KIOCL posts 16.60 cr profit in Q1

Our Bureau Bengaluru | Updated on August 08, 2019 Published on August 08, 2019

Board approves follow on public offer for sale of 15% of paid up equity capital

KIOCL Ltd , a mini-ratna CPSE under Ministry of Steel, posted Rs 16.64 crore in profits on standalone basis for the first-quarter of 2019-20 against a loss of Rs 3.63 crore in the same period last year.

The company’s total income is higher by 47.31 per cent at Rs 626.68 crore against Rs 425.40 crore recorded last year. EPS for the quarter stood at negative Re 0.20 (Re -0.06).

M V Subba Rao, CMD, KIOCL said this was made possible mainly due to supportive pricing environment, efficiency in production, swift decision making and implementing the concept of “Make in India”.

Follow on Public Offer

The company’s board has approved Follow on Public Offer (FPO) for sale of 15 per cent of paid up equity share capital , at a price to be determined by the book building process by the selling shareholder and the company in consultation with the book running lead manager.

The company achieved 24 per cent higher pellet production at 6.1 lakh tonnes against the target of 4.90 Lakh tonnes. On the dispatch of pellets, the company achieved 6.99 lakh tonnes surpassing the quarterly targets. During the quarter 5.39 lakh tonnes were exported and 1.6 lakh tonnes were sold in the domestic market.

According to Rao, the statutory clearances for obtaining captive mines as well as for diversified projects are at an advanced stage.

He stated that, to tide over the raw materials constraints, the company has initiated talks with international miners for importing raw material to take advantage of the prevailing market opportunities arising out of sharp increase in pellets demand worldwide.

Published on August 08, 2019
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