Saturday, October 31, 2009

Gujarat NRE Coke Ltd posts healthy Q2 results, expects a bright future ahead

Kolkata, 30th October 2009: The Board of Directors of Gujarat NRE Coke Ltd, the largest independent met coke producer in India, at the board meeting held yesterday evening approved the unaudited financial results of the company for the second quarter (Q2) ended 30th September 2009. The company’s operations show a healthy growth in its turnover and profits in the second quarter as compared to the first quarter in the current fiscal year.

The total income for the quarter ended 30th September 2009 stood at Rs 383.41 crore, registering a growth of around 24% over Rs 310.04 crore achieved during the quarter ended 30th June 2009. The profit before tax for the current quarter is Rs 27.90 crore as against that of Rs 5.54 crore in the previous quarter, reflecting a strong growth momentum in performance of the company. Similarly the company posted a net profit of Rs 20.21 crore, registering a whooping over 450% growth over previous quarter’s profit of Rs.3.64 crores.

Commenting on this impressive performance, Mr Arun Kumar Jagatramka, Chairman and Managing Director, Gujarat NRE Coke Ltd said, “Coke demand in India has been firming up from the start of this quarter and the market is buoyant at present. Though it may take time reach to the highs of 2008, but the future is bright for coke industry in India”. “With China for the first time becoming a net importer, this near famine of coke in China spells well for the met coke manufacturers in India, with expectations of more higher margins from operations in coming months”, said Mr Jagatramka. “The present market scenario does indicate that the future is very bright and we expect much higher growth in coming months. The order books indicate a strong demand of coke in India, and even demand in overseas market is also picking up.”

“A few milestones achieved in this quarter include, starting of production in our newly commissioned coke plant in Dharwad. Also in Australia, the commencement of longwall mining in NRE Wongawilli mine, and the start of production through longwall has been an excellent achievement. This would enable the mines to reach a capacity to deliver upto 2.00 million tones per annum. We are now poised to reap benefits of the future upturns in the market that is bound to come sooner than later”, added Mr Arun Kumar Jagatramka.

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