OMC turnover up 60 per cent

The Orissa Mining Corporation (OMC) has recorded over 60 per cent increase in its turnover in the first quarter of 2004-05 taking its gross sales to Rs 123.45 crore as against Rs76.98 crores during the first quarter of the previous year.

Meanwhile, OMC has paid Rs11 crore as interim dividend to the state government for 2003-04 as against Rs one crore in the previous year.

In 2003-04, the company earned Rs 151.45 crore profit (PBT) on a turnover of Rs.372.27 crores.

This was significantly higher compared to turnover of Rs197.58 crore and profit of Rs19.80 crore in the previous year.

Earlier, the company had paid dividend to the state government only on four occasions "" 1992-93, 1995-96, 1996-97 and 2002-03 "" aggregating Rs 7 crore.

Adding another feather to its cap, the company has achieved a debt-free status by squaring up all its deemed loan from the government last year.

Orissa Mining Corporation, which mainly deals in mining and sale of iron, chrome and manganese ore, plans to take its combined ore production to 111.5 lakh tonnes by the end of 2006-07 from 32 lakh tonnes in 2003-04.

Its target for the current fiscal is 55 lakh tonnes and the year next 91.5 lakh tonnes.

"The turn around in the Corporation is a result of hard work, sincerity and commitment exhibited by the work force," said Sanjeev Hota, chairman of OMC.

According to CJ Venugopal, managing director of OMC, increasing the productivity, lowering the operational cost and introduction of technology are the key areas, which are receiving utmost attention to improve the profitability of the company.

The company has already brought down the production cost as a percentage of sales from 24 per cent in 2001-02 to 19 per cent in 2003-04. The distribution cost (as a percentage to sales) in the same time has been brought down from 33 per cent to 21 per cent.

"Our objective is to lower them further in future", he added. Venugopal said, the history of excellence during the last financial year has been continued in the current financial year 2004-05 which is clear from the first quarter results.