KIOCL Ltd (formerly Kudremukh Iron Ore Company Ltd), a Central public sector undertaking under the Union Steel Ministry, recorded a profit after tax of ₹4.07 crore in the second quarter of 2019-20 as against a profit of ₹49.52 crore in the corresponding period of previous fiscal.
Quoting MV Subba Rao, Chairman and Managing Director of KIOCL Ltd, a company statement said here that the company’s profitability has been affected due to severe drop in global steel as well as pellet prices.
The company is continuing to procure iron ore from different sources to reduce input raw material cost, he said, adding that it is continuously exploring new markets for sale of pellets as well as raw material sources for cost effectiveness.
The total revenue of the company stood at ₹386.04 crore (₹450.02 crore) during Q2. Of this, the revenue from operations was at ₹361.22 crore (₹425.42 crore) during the period.
The company recorded a profit after tax of ₹20.71 crore in the first six months of 2019-20 as against ₹45.89 crore in the corresponding period of 2018-19.
The total revenue of the company increased to ₹1012.71 crore (₹875.42 crore) in the H1 of 2019-20. Of this, revenue from operations was at ₹959.66 crores (₹818.60 crore) during the period.
Rao said the increase in the revenue from operations was due to the pellet supplies to Middle East countries. This new market has helped the company to increase the sales volume and turnover, he said.
The pellet production of the company stood at 1.115 million tonnes (0.924 million tonnes), and despatch at 1.111 million tonnes (0.987 million tonnes) during the first six months of the fiscal. (KIOCL Ltd operates a pellet manufacturing unit in Mangaluru.)