India: KIOCL Reports Strong Quarterly Results Amid Increased Pellet Sales

State-owned pellet maker – KIOCL (formerly Kudremukh Iron Ore Company Ltd) witnessed significant increase in net sales which grew to INR 442.8 Cr in Q3 FY’18, up 37.5% Y-o-Y as against Q3 FY’17. However, the Q-o-Q results witnessed a decline of 2.1% in Q3 FY’18 as compared to Q2 FY’18, with reduced operating losses.

EBIDTA was higher by 400% Q-o-Q to INR24.03 Cr compared to INR 4.81 Cr.

Strong international demand, improved selling price, exemption of DBC on railway freight and optimization of cost, collectively resulted in KIOCL’s improved operating profit in Q3 FY18.

KIOCL Performance Highlights:

1. The company recorded total iron ore pellet production at 0.635 MnT in Q3 FY’18, up 31% as against Q3 FY’17.  While in Q3 FY’18 pellet sales witnessed at 0.638 MnT, up 19% compared to Q3 FY’17.
2.  The company recorded total production of 1.7 MnT from Apr-Dec’17, with total sales at 1.763 MnT from Apr-Dec’17. The volumes have increased by 134% and 151% on yearly premises.
3. In first nine months of FY18, the company recorded an increase in exports of 85% Y-o-Y to 1.033 MnT in Q3 FY’18 as against Q3 FY’17. Sales in domestic market increased by 570% Y-o-Y basis to 0.731 MnT.
4. KIOCL entered into joint venture with RINL to set up a pellet plant near Vishakhapatnam Steel Plant in Jan’18, which is expected to further enhance the revenues.
5. Recorded highest dispatch of pellets through export in last 5 previous financial years.