The Board of Directors of Gujarat NRE Coke approved the Audited Financial Results for the Year ended 31st March 2009.
During the year, the company’s turnover went up by around 75% to Rs.1522.60 crores for the year ended March 2009 as against Rs.872.15 crores for the year ended March 2008. However, in the wake of global recession, the profit after tax stood at Rs.107.23 crores for March 2009 as against Rs.172.88 Crores in March 2008. The Board of Directors have recommended a dividend of Re. 1 per share (10%) on the Equity Shares of the Company for the year 2008-09 inspite of an extremely difficult year.
Commenting on the results, Arun Kumar Jagatramka, Vice Chairman and Managing Director, Gujarat NRE Coke said, “we operate in an unique industry segment, where it neither has peers, nor is the industry and its dynamics easily understood. Suffice to say, the fortunes of the industry, which is closely interlinked with the commodity cycles of coke and steel, is highly volatile. This volatility ensures that there always remain a natural entry barrier for small, marginal players on the one hand and on the other, provides the company with an opportunity to use the downturns to invest in capacities as per the company's long term vision and prepare the ground to reap the benefits of the inevitable upturn that follows. Thus the figures do not reflect the complete picture, as the actual benefits of the large expansion and integration work that is in progress will be available in near future”.
He further went on to add that "five years back, our company had a total installed capacity of 0.2 million tonnes as compared to present 1 million tonnes, and was a standalone coke producer without any stake in coal mines or any other sort of supply security. The company's decision to think ahead and acquire coking coal mines to secure supply of its raw material and the resultant potential therefore is not reflected as the mines are currently in developmental stage and are producing less than one million tons of premium quality Hard coking coal as opposed to a targeted 7 million tonnes expected in 3-4 years time. The fact that these mines contain more than 500 million tonnes of in situ resource of world’s best premium quality hard coking coal also does not find place in the current EPS/PE calculations.
High quality hard coking coal is a resource that is globally in short supply. It is a commodity whose availability is limited and demand is projected to grow at an exponential rate. There is already a demand supply mismatch and it is expected to become more pronounced in the years to come, and the prices more and more volatile. Therefore the company being the first and the only Indian company to own and operate coking coal mines in Australia with secured supplies for the future enjoys singular benefit which few other companies around the world can lay claim to.
Gujarat NRE Coke is the country’s largest independent producer of Low Ash Metallurgical Coke (LAMC) with a track record of regularly rewarding its Investors with dividends and bonus. Further, the Company has also plans to set up a Greenfield 1 million tonne coke plant in the Nellore District of Andhra Pradesh. And a further 1 million tonne coke plant in Gujarat besides adding another 0.25 million tonnes at Dharwad over next 3-5 years, thereby taking the total coke making capacity to at least 3.5 million tonnes.
Besides the company already has 87.5 MW of wind power operational in Gujarat and has recently announced plans to set up further 200 MW of wind power over next 3-5 years. The Company is already in the process of setting up 60 MW of waste heat recovery co gen power plants, which are expected to be operational in 2010. The company further plans to set up 200 MW of Thermal Power plant and 120 MW of waste heat recovery power plants over next 3-5 years. The total power generation capacity would thus become 667.5 MW once these projects are complete.