43rd Annual General Meeting of KIOCL Ltd at Bangalore

Bangalore.The 43rd AGM of KIOCL Ltd., a central PSU under Ministry of Steel is held this day (03.09.2019) at its Registered Office at Bangalore. At today’s AGM, the shareholders adopted the Annual Accounts for FY 2018-19 and approved the dividend final of Re. 1.33/ per equity share (ie 13.33%) on face value of Rs. 10/- each. The total dividend for the financial year ended 31st March, 2019 amounts to Rs 99.7 Crores together with Dividend Distribution Tax.

 

Addressing the shareholders, Shri M.V. Subba Rao, CMD, highlighted the performance of fiscal year 2018-19 and said that the Company has reported total revenue of Rs. 2012.68 Crores, with profit before tax of Rs. 184.12 Crores, up by 13% & 114% respectively. 

CMD stated that  the Pellet Plant could perform well due to the initiatives like improved production of Pellet with internationally acclaimed physical & chemical specifications, High Sales Volume along with better capacity utilization, entering into new International Markets,  100% utilization of coastal sea route for both  incoming  and outgoing movements, excellent treasury management and implementation of stringent austerity measures etc., thereby reducing input cost and increasing the realization. 

 

The highlights of performance of FY 2018-19 are as under:

 

 

 Operational Performance

 

He also informed that in FY 18-19, KIOCL produced 2.24 Million Ton and dispatched 2.21 million tons of pellets out of which 1.52 million tons of pellets were exported during the year. This is the highest quantity of pellets exported since the closure of its captive mines. KIOCL has also entered into high grade new Pellet market where premium is high and is used for making quality steel. Apart from this, KIOCL is satisfying the demand of Domestic Coastal Market. 

 

Financial Performance

 

KIOCL recorded total revenue for the FY 2018-19 at Rs. 2012.68 crores, up by 13%.  An Operating EBITDA for the year Rs. 79.22 crores against previous year operating loss of Rs. 42.02 Crores. The Company posted profit before tax of Rs. 184.12 crores for the year witnessing a growth of 114 % YoY.

The stellar performance is highly commendable 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

 

KIOCL has been making consistent efforts to expand and develop global markets such as Japan, South Korea, Vietnam, Malaysia, Chile in addition to Chinese markets.  The Company has also entered into UK Market to realize one of the five challenges posted by Hon’ble Prime Minister on CPSE Conclave.

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 in India Programme” of Hon’ble Prime Minister.  

 

Diversification & Expansion 

 

Shri Rao during his address to the gathering informed the shareholders that they were extensively working for a large size capital investment to the tune of Rs. 3500 Crores in core as well as new business sector during next 2-3 years period.

 

 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 of Chrome Ore Beneficiation Plant of M/s OMC, Odisha & Operation & Maintenance (O&M) of Iron-Ore Beneficiation Plants & Pellet Plants.   

 

The option for power generation in the form of solar energy and to boost the usage of this power source, KIOCL has set up 1.30 megawatt solar power plant in its BFU premises land at Mangalore and has already commenced the generation of solar power. 

KIOCL is also poised to set up a 5 megawatt solar plant during this FY 2019-20 and is on advanced stage of finalization of land.

 

In addition, KIOCL is  setting up 2.0 LTPA DISP Plant under forward & 1.79 LTPA capacity Coke Oven Plant under backward integration projects  along-with modernization of Blast Furnace Unit to make the unit economically viable. The EIA/ EMP Study Report have been submitted to KSPCB & the Public Hearing is being fixed during the second week of October 2019. 

 

KIOCL is also setting up of a 2 mtpa capacity port based Pellet Plant on JV basis with RINL where RINL will have security for raw materials & Market. In this regard an Joint Venture Agreement shall be signed soon.

KIOCL has planned to commence the Mining operation at Devadari range of Sandur taluk in Ballari 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 execution of Mining Lease & preparation of Detailed Project Report (DPR).  The Environment & Forest (Stage–I) Clearances are under process. The public hearing has already been completed for this project by KSPCB.   

 

Apart from the above, Mineral Exploration activities are underway along with the exploratory drilling work on allocation of areas by Ministry of Mines, GoI, under NMET programme and by Govt. of Karnataka.