The shares of a leading producer and exporter of Iron Oxide Pellets fell by 2.5 percent to a price of Rs 362 per share after the company temporarily suspended its Mangalore pellet plant unit.
At 2:20 p.m., KIOCL Ltd shares were trading at Rs 365.55 per share, down 1.52 percent on the National Stock Exchange from the previous close price. The company has a market capitalization of Rs 22,261 crore
According to the company’s exchange filing, KIOCL Ltd has temporarily suspended its Pellet Plant Unit in Mangalore effective from today, December 12, 2023, due to a lack of iron-ore fines.
Currently, KIOCL has a 3.5 million tons capacity Pellet Plant and 2.16 tonnes capacity of the Blast Furnace Unit located at Mangalore, Karnataka.
KIOCL Ltd’s share has risen 90 percent in the last six months and 76 percent in a year.
KIOCL revenue has increased by 180 percent year on year, from Rs 154 crore in Q2FY23 to Rs 431 crore in Q2FY24. During the same period, the company’s net losses decreased, from Rs 102 crore to Rs 21 crore.
The company has planned to re-activate the existing Blast Furnace of 350 Cu.M capacity by suitable upgradation with a forward integration project of 2.0 lakh TPA DIS 1.8 Lakh TPA, Coke with a total capital outlay of Rs 836.90 crores.
During the FY 22-23 the company kept a total CAPEX of Rs 422.83 crores, which was 110% of the Budget Estimate (BE) of Rs 384.63 crores and against the FY21-22 CAPEX of Rs 290.45 crores.
According to the recent shareholding pattern, the company promoters hold 99.03 percent of the company stake and retail investors hold a 0.84 percent stake.
KIOCL is a flagship firm of the Government of India’s Ministry of Steel, holding Miniratna status. It is an export-oriented unit with experience in iron ore mining, filtering technologies, and pellet manufacture. The company also operates in the Pellets and Pig Iron business segments.
Written by Omkar Chitnis
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