KIOCL Reports Robust Performance in FY 2017-18

Mangalore: KIOCL Limited declared the Financial Results for the 4th quarter and financial year 2017-18. During the year, the Company reported income from operations at Rs. 1605.41 Cr, with profit before tax at Rs. 86.09 Cr, up 73% & 175% respectively. 

 

Shri MV Subba Rao, CMD, KIOCL informed that the Pellet Plant continued to perform better at the back of improved production, Sales Volume along with better capacity utilization and successful implementation of 'Make in India' concept. The company also informed that it has taken many initiatives like multiple sourcing of raw materials, effective utilization of coastal transportation, Indigenization of various raw materials/spares, proper inventory management system, etc., thereby reducing input cost and increasing the realization.

 

 

 

 

The highlights of performance is summarised as under:

 

Key highlights - FY 2017-18

 

 

Operational Performance

 

Shri N. Vidyananda, Director (P&P) informed that in FY 17-18, KIOCL produced 2.33 Million Ton and dispatched 2.30 million tons of pellets out of which 1.46 million tons of pellets were exported during the year. This is the highest quantity of pellets produced and dispatched since the closure of its captive mines. The increase in sales could be achieved as a result of innovative marketing initiatives introduced by KIOCL. 

KIOCL also made use of its expertise of handling different types of ores to produce pellets and its locational advantage entered into back to back contracts to the tune of about 0.6 million tons. This also helped KIOCL to expand its exports to Iran, Japan, South Korea and Oman in addition to its regular domestic and international markets.

 

Financial Performance

 

KIOCL recorded revenue from operations for the FY 2017-18 at Rs. 1605.41 crores, up by 73% YoY.  Operating EBITDA for the year grew by 90% YoY to Rs. 105.24 crores. The Company posted profit before tax of Rs. 86.09 crores for the year witnessing a growth of 175 % YoY.

 

Dividend: - 

 

The Board of Directors have recommended a final dividend of Rs 1.06 per equity share, subject to the approval of the shareholders at the Annual General Meeting. Together with an interim dividend of Re.0.27 per equity share, the total dividend for the financial year ended 31st March, 2018 amounts to Rs 67.26 Crores and will absorb Rs. 80.95 crores, including Dividend Distribution Tax of Rs.13.69 crores, thereby distributing 100% of PAT.

 

Projects: - 

 

The Board approved the TEFR for setting up of the following projects:-

 

1. Forward and Backward integration projects to the Blast Furnace Unit of KIOCL Ltd, Mangalore; and 

2. Setting up of a 2 mtpa capacity port based Pellet Plant on JV basis.