Gujarat Mineral Development Corporation (GMDC) posted a good quarter. In an interview to CNBC-TV18, L Kulshrestha, CFO of GMDC spoke about the results and his outlook for the company.
He said lignite sales volume is at 28.42 lakh metric tonne in Q1 of FY18.
According to him, strong demand for lignite is likely to sustain. He expects growth target of over 20 percent in current financial year.
"40 percent of lignite volume is sold to government body and remaining 60 percent is sold in open market," he added.
On goods and services tax (GST) front, he said lower rate of GST has aided lignite demand significantly.
He expects to achieve lignite sales volumes of 15 lakh metric tonne in Q2 of FY18.
We have a cash surplus of Rs 1100 crore and it will be utilised for land acquisition, technology upgradation and investment in renewable energy projects, said Kulshrestha.
GMDC's current capacity utilisation with respect to thermal power project is 61 percent and in wind it is 30 percent.
Watch accompanying video for more details.
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