With the removal of restriction of selling lignite to only end-users, GMDC hopes to see incremental revenue going forward
GMDC MD Prem Kumar Gera spoke to CNBC-TV18 about the prospect of the company going forward.
Below is the transcript of Prem Kumar Gera’s interview with Ekta Batra and Anuj Singhal on CNBC-TV18.
Ekta: Can you tell us what your volumes and realisations were for the quarter?
A: As regards lignite, we have second quarter production which is a monsoon season and production reduces in this season. It is 13.99 lakh metric tonnes and the value is Rs 166 crore and when compared to the similar quarter of the previous year, it was Rs 16 lakh metric tonnes and Rs 195 crore. So, there is a decrease in the sales value as well as in the quantity.
Anuj: Your profit has gone up because of other income and lower tax rate, but operating profit is actually down or is flat year-on-year (Y-o-Y). So, what is the outlook on that front going forward because you reported a minor decline this time?
A: The board has taken a meeting on the last working day on Saturday. We work on Saturday also. Now, what we have done is that we have allowed lignite to be listed not just by our end users, but by anyone. Till now the company had been following a restrictive policy that lignite should be only supplied to the users directly. So, this is a major change that has come on this Saturday board meeting that the government had also agreed with us, we are a government company and it is a very crucial decision.
Till now, only lignite was supplied to the end users. So, now anybody can pick up lignite from us. We are not restricting ourselves to the end user. We used to inspect the premises whether the person has a boiler and the boiler requires lignite and all that, because, please understand, this is in a sense from the era of when the lignite was in a very short supply, in the sense that coal was very expensive, lignite was very cheap.
Ekta: Just a quick question then. How does it change things for you? For example, you did Rs 250 crore in terms of sales this quarter and a profit figure of around Rs 67.5 crore, with this change which has come through, how much do you think your revenues as well as your profits could scale up?
A: We have not exactly worked, but please understand, this is a major reform. The reform in terms of GMDC has been asked to sell to anyone and everyone who wants to buy from us.
Ekta: Any idea what the incremental revenue could be from that?
A: I feel at least 25 percent increase can take place.
Ekta: In your annual sales?
A: Yes, and the quantum and both sides. We have reduced our prices in August and it already has shown some recovery from August and September figures, we can share that also. August, the down was which was 26 percent somewhere had come to 8 percent only. So, because of the cheap imported coal available on the Gujarat ports, people were not picking up lignite.The Great Diwali Discount!
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First Published on Nov 9, 2015 01:54 pm