Companies

KIOCL posts ₹3.66-cr loss in third quarter

Our Bureau Mangaluru | Updated on February 11, 2020

KIOCL Ltd registered a loss of ₹3.66 crore in the third quarter of 2019-20 as against a net profit of ₹21.15 crore in the corresponding period of 2018-19.

MV Subba Rao, Chairman and Managing Director of KIOCL Ltd, said in a press release that during the third quarter iron ore market was dull due to factors such as poor steel prices both in domestic and international markets; reduction in capacity utilisation by global steel players, except China; and excess supply of iron ore pellets.

Due to this the company made operating loss during October and November of 2019-20. It showed a substantial improvement in profit during December of 2019-20, he said.

The total revenue earned from operations stood at ₹478.24 crore during the quarter as against ₹424.63 crore during the corresponding period of the previous fiscal.

However, KIOCL exported 82 per cent of pellets, which is high in recent years, he said.

The new vertical of the company, which is exploration of minerals, is emerging a revenue generating vertical of KIOCL Ltd. This vertical received orders for ₹98 crore. It is expecting orders for another ₹72 crore shortly, he said.

Rao said the statutory clearance for starting mining operations at Devadari mines in Karnataka is under process, and the company is interacting frequently with authorities concerned of the State government for getting clearances so that mining operation can be planned accordingly.

Published on February 11, 2020

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