Companies

KIOCL Q2 profit at ₹31.32 crore

Our Bureau Mangaluru | Updated on November 13, 2020

The whopping 669.53% rise in PAT is thanks to the increase in pellet prices in Q2 FY21

KIOCL Ltd (formerly Kudremukh Iron Ore Company Ltd) has recorded a profit after tax of (PAT) ₹31.32 crore in the second quarter of 2020-21, against a profit of ₹4.07 crore in the corresponding period of 2019-20, registering a growth of 669.53 per cent.

Subba Rao, Chairman and Managing Director of KIOCL, attributed this growth in profit to the increase in pellet prices during the second quarter (Q2) of financial year 2020-21.

The total revenue of the company increased to ₹486.44 crore during Q1 of 2020-21, against ₹386.04 crore in Q2 of 2019-20.

Also read: KIOCL falls nearly 10 per cent on share buyback plan

During the first quarter of 2020-21, the company had recorded a PAT of ₹12.02 crore and revenue of ₹460.58 crore.

H1 performance

Quoting Rao, a press release by the company said that it scored well during the first half of 2020-21 in the midst of Covid-19 pandemic and incessant rains that caused disruptions in iron ore supplies from Chhattisgarh. The company has also undertaken stringent austerity measures to improve profitability for its long-term sustenance.

The PAT of the company increased to ₹43.34 crore in the first six months of 2020-21, compared to ₹20.71 crore during the corresponding period of the previous year. Revenue from operations was at ₹897.63 crore during H1 of 2020-21, against ₹959.66 crore in the corresponding period of 2019-20.

The release said that iron ore pellet production at the company stood at 1.007 million tonnes and despatches at 1.121 million tonnes during the first six months of 2020-21, compared to 1.115 million tonnes of production and 1.111 million tonnes of despatches during the corresponding period of the previous fiscal.

Also read: Union Steel Minister urges Karnataka to expedite clearances for KIOCL’s Devadari mines

The company is continuously exploring new markets for the sale of pellets as well as raw material sources for cost-effectiveness from both domestic and international markets, it added.

Published on November 13, 2020

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