42st Annual General Meeting of KIOCL

42st Annual General Meeting of KIOCL

Bangalore: The 42st Annual General Meeting (AGM) of KIOCL Ltd.,  held 31st 2018 at its Registered Office at Bangalore. At this AGM, the shareholders adopted the Annual Accounts for FY 2017-18 and approved the dividend final of Re. 0.79/ per equity share (ie.7.90%) on the face value of Rs. 10/- each. The total dividend for the financial year ended 31st March, 2018 amounts to Rs. 81.05 Crores together with Dividend Distribution Tax.
 
Addressing the shareholders, Shri M V Subba Rao, CMD, highlighted the fiscal year 2017-18 performance and said that the Company reported income from operations at Rs. 1605.41 Cr, with profit before tax at Rs. 86.09 Cr, up 73% & 176% respectively on Y-O-Y.
 
CMD viewed 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 has taken up 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 of FY 2017-18 are as under:
 
  • Pellet Production 2.33 Million Ton, up by 59%
  • Pellet Dispatch 2.30 Million tons, up by 66%
  • Revenue from Operations Rs. 1605.41 Crores, up by 73%
  • Operating EBIDTA Rs. 105.24 Crores, up by 90%
  • Profit before Tax Rs. 86.09 crores, up by 176%
  • Profit after Tax Rs. 81.48 crores, up by 70%
 
Operational Performance:
 
During 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 176 % YoY.
The stellar performance is highly commendable since as a merchant Pellet producer in the absence of captive mine, lack of Iron ore security, as it had incurred huge logistic cost in moving Iron Ore from Kirandul-Bacheli Sector of NMDC to its Pellet Plant located at Mangalore Port.
 
Marketing:
 
Developed global markets such as Japan, South Korea, Vietnam, Malaysia in addition to Chinese markets and exported 1.51 Lakh Tons to Japan, 2.50 Lakh Tons to South Korea, 0.50 Lakh Tons to Vietnam, 0.50 Lakh Tons to Malaysia & 2.20 Lakh Tons to China. At the same time KIOCL is also satisfying the demand of the domestic coastal market.
Shri Rao also stated that they had successfully used the spare capacity of their Pellet Plant for tolling purpose to optimize the production capacity and converted imported ore/ concentrate into pellets and thereby partnered in “Make India Vision” of Hon’ble Prime Minister.
  
Diversification & Expansion 
 
Shri Rao during his address to the gathering informed the shareholders that they were extensively working to invest in core and new business sector. He said that Company has initiated many revenue generation ventures with various PSUs in order to encash the professional expertise and experience in Erection & Commissioning, Operation & Maintenance (O&M) of Iron-Ore Beneficiation Plants & Pellet Plants. Mainly O&M contract of 1.2 MTPA capacities Pellet Plant & 1.89 MTPA Beneficiation Plant of NMDC at Donimalai and many more are on the way.
The option for power generation in the form of  Solar energy and to boost the usage of this power source, KIOCL has set up a 380 kWp rooftop solar power plant at the existing buildings located at Pellet Plants & Blast Furnace units at Mangalore.  
KIOCL is also in the process of setting up of an 1.30-megawatt solar power plant at our BFU land at Mangalore and work on this project has already commenced and shall be completing during September 2018.  
KIOCL is also poised to set up a 5-megawatt solar plant during this FY 2018-19.
In addition, KIOCL has also planned to set up forward & backward integration projects at its Blast Furnace Unit. In this regard, TEFR has been prepared for setting up of 1.6 Lakh tonne capacity of Coke Oven Plant and 2.0 Lakh Tonne capacity of Ductile Iron Spun Pipe Plant.
 
KIOCL is also setting up of a 2 mtpa capacity port based Pellet Plant on JV basis with RINL where RINL have security for raw materials & Market. In this regard, an MoU was signed on 6th January 2018 with RINL in the presence of Union Minister of Steel & Secretary Steel, Govt. of India during their visit at Mangaluru.
 
KIOCL has planned to commence the Mining operation at Devadari range of Sandur taluk in Bellary Sector on obtaining the statutory clearances and shall be setting up 2.0 MTPA Iron Ore Beneficiation Plant & 2.0 MTPA Iron Oxide Pelletization plant on the execution of Mining Lease & preparation of Detailed Project Reports (DPR).

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