KIOCL Limited — AGM Information 2018

Aug 31, 2018

ಕಐಓಸಿಎಲ್ ಅಮಿಟೆಡ್(ಭಾರತ ಸರ್ಕಾರದ ಉದ್ಯಮ)	(भारत सरकार का उद्यम)	के आई ओ सी एल लिमिटेड KIOCL LIMITED(A Government of India Enterprise)
ನೊಂದಾಯಿತ ಕಾರ್ಯಾಲಯ:೨ನೇ ವಿಭಾಗ, ಕೋರಮಂಗಲಬೆಂಗಳೂರು - ೫೬೦ ೦೩೪.	पंजीकृत कार्यालय :।। ब्लाक, कोरमंगला,बेंगलूर - 560 034.	Registered Office:Il Block, Koramangala.Bangalore - 560 034.	KUDREMUKHಐಎಸ್ಓ 9001, 14001 ಮಓಹೆಚ್ಎಸ್ಎಎಸ್ 18001 ಸआई एस ओ 9001, 14001 रओएचएसएएस 18001 कम्पISO 9001, 14001 &OHSAS 18001 COMPANY
ದೂರವಾಣಿ: ೦೮೦-೨೫೫೩೧೪೬೧ ರಿಂದ ೭೦ಫ್ಯಾಕ್ಸ್$:$ 000-933320033-35690ವೆಬ್ ಸೈಟ್ : www.kioclitd.in	कार्यालय: 080-25531461-70: 080-25532153-5941फेक्सवेबसाइट: www.kioclltd.in	Telephone: 080-25531461-70$: 080 - 25532153 - 5941$FaxWebsite: www.kioclltd.inCIN: L13100KA1976PLC002974

No. S/BC/1 (18-5)/2018/ August 31, 2018

National Stock Exchange of India Limited
Scrip Code: KIOCL
Through: NEAPS
BSE Limited
Scrip Code: 540680, Scrip Name: KIOCL
Through: BSE Listing Centre
Metropolitan Stock Exchange of India Limited
Scrip Code: KIOCL
Through: mylisting

Dear Sir/Madam,

Sub: Regulation 30 of SEBI (LODR) Regulation 2015 – Press Release

A copy of the Press Release titled "42 nd AGM of KIOCL Ltd" dated 31.08.2018 is attached.

This is for information and record.

Thanking you, Yours faithfully, For KIOCL Limited,

(S. K. Padhi) Company Secretary

Encl: as above

ಕಐಓಹಿವಿಲ್ ಅಮಿಚೆಡ್		के आई ओ सी एल लिमिटेड KIOCL LIMITED
(ಭಾರತ ಸರ್ಕಾರದ ಉದ್ಯಮ)	(भारत सरकार का उद्यम)	(A Government of India Enterprise)
ನೊಂದಾಯಿತ ಕಾರ್ಯಾಲಯ:೨ನೇ ವಿಭಾಗ, ಕೋರಮಂಗಲಬೆಂಗಳೂರು - ೫೬೦ ೦೩೪.	पंजीकृत कार्यालय :।। ब्लाक, कोरमंगला,बेंगलूर - 560 034.	Registered Office:Il Block, Koramangala.Bangalore - 560 034.
ದೂರವಾಣಿ: ೦೮೦–೨೫೫೩೧೪೬೧ ರಿಂದ ೭೦ಫ್ಯಾಕ್ಸ್ : ೦೮೦–೨೫೫೩೨೧೫೩-ವೆಬ್ ಸೈಟ್ : www.kiocIItd.in$:$ 000-lessalossa-sfyn	कार्यालय: 080-25531461-70: 080-25532153-5941फेक्सवेबसाइट: www.kioclltd.in	Telephone: 080-25531461-70$: 080 - 25532153 - 5941$FaxWebsite : www.kioclltd.inCIN: L13100KA1976PLC002974

Date: 31.08.2018

PRESS NOTE 42 nd AGM of KIOCL Ltd

The 42 st AGM of KIOCL Ltd., a state owned PSU under Ministry of Steel is held this day (31.08.2018) at its Registered Office at Bangalore. At today's 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 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 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. 86.09Cr, 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.

ಕವಓಹಿಎಲ್ ಅಮಿಚೆಡ್(ಭಾರತ ಸರ್ಕಾರದ ಉದ್ಯಮ)ನೊಂದಾಯಿತ ಕಾರ್ಯಾಲಯ :೨ನೇ ವಿಭಾಗ, ಕೋರಮಂಗಲಬೆಂಗಳೂರು - ೫೬೦ ೦೩೪.ದೂರವಾಣಿ : ೦೮೦–೨೫೫೩೧೪೬೧ ರಿಂದ ೭೦ಫ್ಯಾಕ್ಸ್: ೦೮೦–೨೫೫೩೨೧೫೩–೫೯೪೧ವೆಬ್ ಸೈಟ್ : www.kiocIItd.in	(भारत सरकार का उद्यम)पंजीकृत कार्यालय :।। ब्लाक, कोरमंगला,बेंगलूर - 560 034.कार्यालय: 080-25531461-70: 080-25532153-5941फेक्सवेबसाइट: www.kioclltd.in	के आई ओ सी एल लिमिटेड KIOCL LIMITED(A Government of India Enterprise)Registered Office:Il Block, Koramangala.Bangalore - 560 034.Telephone: 080-25531461-70$: 080 - 25532153 - 5941$FaxWebsite: www.kioclltd.inCIN: L13100KA1976PLC002974	KUDREMUKHಐಎಸ್ಓ 9001, 14001 ಮತ್ತುಓಹೆಚ್ಎಸ್ಎಎಸ್ 18001 ಸಂಸआई एस ओ 9001, 14001 तथओएचएसएएस 18001 कम्पनीISO 9001, 14001 &OHSAS 18001 COMPANY
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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 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 roof top 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 execution of Mining Lease & preparation of Detailed Project Reports (DPR).

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