core sector communique

Gujarat NRE sails high riding the coking coal market upswing;

Records highest PAT in last ten Quarters

Kolkata, 25th April 2011: The Board of Directors of Gujarat NRE Coke Ltd, the largest independent met coke producer in India, at its meeting held yesterday approved the unaudited financial results of the company for the fourth quarter (Q4) ended 31^st March 2011.

The total income for the quarter ended 31^st March 2011 stood at Rs 459.38 Crores registering an increase of approximately 16% over corresponding quarter last year. The net profit after tax in the current quarter has shown a remarkable 38 times increase (50.82 Crores as against 1.34 crores in YOY Quarter) reflecting the strong growth momentum in the performance of the company. In fact, the current PAT is the highest registered by the Company in the last 10 Quarters.

Commenting on the quarterly volatility, Mr Arun Kumar Jagatramka, Chairman and Managing Director, pointed out the consistent growth  over the last four years as depicted by the cumulative 4-years’ figures in the enclosed figure one as against wide volatility in quarterly results in figure two.

Mr Jagatramka also added “The coking coal price has been rising steadily over the past few months and we have been able to reap the benefits of this. In fact there is a global shortage of met coke and we may see a scarcity in this product for a few more months. It is expected that the price of met coke would hover around the peak zone and may shoot up further in the second half of 2011 and we are ready to take advantage of this price upswing”.

Speaking on the aggressive expansion plans undertaken by the Group in India as well as Australia Mr Jagatramka said, “The met coke production capacity of Gujarat NRE Coke Ltd is presently at 1.38 MTPA. The company plans to increase the capacity to around 4 MTPA in the next 4-5 years. The company is investing around Rs.1000 crore in India to increase the coke making facilities.” In Australia we are working towards achieving 6 MTPA coking coal production in next 3-4 years from the current levels this year”, he added.