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Increase in operational income to aid ICCL's restructuring plans
July 29, 2000
Internal Press Release

Increased revenues due to captive mining is aiding Odisha based chrome alloys major Indian Charge Chrome Ltd (ICCL) with its financial restructuring plans. Revenue for the first quarter of the current financial year has increased by 54% to Rs 38.05 crores as compared to Rs 24.68 crores in the corresponding period last year. The company has reported an operating profit of Rs 3.15 crores for the quarter ending June 30th, 2000.

As a result of improved cash-flow and profitability the company has been able to resume repayments to Financial Institutions led by IDBI and Consortium of Banks led by IOB with Rs 8.90 crores having been paid so far this year.

Revenues have increased due to higher production of charge chrome as a result of improved demand from the stainless steel industry. The company has also benefited from the ready availability of its main raw material, chrome ore, from the mining lease allotted in Sukinda Valley and the record generation by its captive power plant.

 

Chrome Ore raising in the Group's mines has increased by 365% over the previous year and enabled continuous supply of the crucial raw material to ICCL's plant at Choudwar. The average raising during the period January-December 1999 stood at 8451 tonnes per month whereas in the month of May 2000 it touched a record figure of 30,821 tonnes. During 2000-01 the Group is planning to raise 3,00,000 tonnes of chrome ore. The captive power plant has established several records lately including generating 106.9 MW (99% plant load factor) on June 15th. This marked improvement augurs well for the company as it will lead to increased capacity utilisation in addition to the realisation of economies of scale due to higher quantities flowing through the process pipeline.

The company feels that the improving conditions on all fronts will help it in putting together a viable restructuring plan. According to ICCL's Joint Managing Director Subhrakant Panda, "There is a distinct turnaround underway which is enabling us to work towards rehabilitating the company". He said talks are going on to raise funds and added that the company would shortly be submitting a restructuring proposal to the term lenders.

Panda is pleased that the company has been able to dedicate a substantial part of its revenue inflows towards repayment to the term lenders. He said, "It is our constant endeavour to maintain a regular payment schedule from the surplus available after meeting our operational requirements".



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Mr Kishore Mohan Mohanty
Bhubaneswar
email: kishoremohanty@imfa.in