(THE NEWSMAN OF INDIA.COM)

The audited financial result of Hindustan Copper Limited (HCL) of which Sanosh Sharma is the CMD, HCL for the financial year 2017-18 was approved by its Board of Directors in the meeting held on 30th May 2018. During the year the financial performance of the Company has improved substantially on the face of strong performance in first three quarters compared to last year. In the fourth quarter, though the production was better than the corresponding period of last year, the sales realization has cooled down due to unfavorable market conditions, and since then, it has improved and will be reflecting in subsequent quarters of current fiscal year.

Performance Highlights FY 2017-18 :

i. Turnover of Rs 1719 crore has increased by 35% compared with last year.

ii. Profit before tax of Rs 122.69 increased by 29% compared with last year.

iii. Total Copper sales volume was best in last seven years.

iv. Copper cathode production was 39% higher than the last year.

v. Metal-in-Concentrate production was 4% higher than the last year.

vi. Re-opened Kendadh mines at Jharkhand in Dec 2017.

vii. Commissioned Banwas mine (a new mines) at Khetri Copper Complex, Rajasthan in June 2017.

viii. Capex during 2017-18 has increased by 47% to Rs 589 crore from Rs 400 crore.

1.During 2017-18 fiscal year, the profit before tax has registered 29% growth to Rs. 122 crore from Rs. 94 crore in the FY 2016-17. While revenue from operations (Gross) has registered a growth of 31%, it was Rs. 1720 crore compared to Rs. 1311 crore in the previous year. EBDITA earnings were Rs. 308 crore compared to Rs. 246 crore in the previous year. The copper sales volume in FY’18 has increased by 26 % to 36435 tonnes compared to 28,888 tonnes in the last fiscal year and was the best in last seven years. Copper cathode production during FY’18 was 39% higher than the last year. Metal-in-Concentrate production was 4% higher than the last year.

2.Inspite of issues with the mine contractor of Surda mines, we have been successful in restarting the mine. At present the Surda mine is operated departmentally and is not dependent of the contrcators.

3.Considering the capex requirement in the coming years, the Board declared dividend to its shareholders at the rate 30% of the Profit After Tax from continuing and discontinuing operation. Capex expenditure in FY’18 has increased significantly to Rs. 590 crore from Rs. 401 crore in the previous year, thus registering a growth of 47%. This year the target of capex has been set at Rs. 700 crore.

4.The Malanjkhand underground mine project which is the flagship expansion project of the Company is progressing as per schedule. It is planned to commence production from the underground mine from Dec’ 2018. Sinking of Service shaft has been completed and production shafts in also near completion.

5.During the FY 2017-18, two mine expansion projects, namely Banwas mine at Rajasthan and Kendadih mine at Jharkhand, were commissioned. Consequently, in the current FY 2018-19, the Company expects significant growth in the mine production.

6.During the FY 2017-18, the Company has initiated a project on “Waste to Wealth”. A compatible technology has been developed to extract minerals and metals from copper ore tails (CoT), a waste generated during copper ore beneficiation. A plant with annual capacity of 3.3 million tonne is constructed at Malanjkhand, Madhya Pradesh which is expected to be commissioned in July, 2018. The project shall be a significant value creator for the Company.

7.Monetization of waste rock
Ore burden is to be removed while extraction of copper ore at Malanjkhand open cast mines. These ore burden is essentially waste rocks which are granite or quartzite in nature. At present around more than 100 million tones of such waste rock is available at Malanjkhand. Tests have already been conducted to ascertain its suitability with Railway Ballast specification. We have initiated the project to sale waste rock to Indian Railways. Based on the internal assessment the present stock is having vale more than Rs 1000.0 crore.

8.0 Value Added products: The proposed collaboration with MIDHANi is on course and trail production has stated at MIDHANI works

9.0 JV Company with CMDC
A New Company Chhattisgarh Copper Company ha been formed on 21.5.2018. Inn the JV Company HCL holds 74% and Chhattisgarh Mineral Development Corporation (CMDC) 26%. The JV Company will focus on exploration of copper mineral in the State

10.0 With the Government’s increased focus on infrastructure, construction and manufacturing sectors and renewal energy, the Company is confident that it shall generate greater demand for Copper in domestic market.