Post News Network
Bhubaneswar, August 28: IDCOL Ferrochrome and Alloys Ltd, a unit of state-owned Industrial Development Corporation of Orissa Ltd (IDCOL), had reported a loss of Rs 12.84 crore in the 2013-14 period due to higher cost of raw material, the 15th annual report of IDCOL said. The company had a net profit of Rs 6.25 crore in 2012-13 period, the report said.
“The loss was due to higher cost of raw material as well as lower volume of production and sales,” it said. As per the annual report, production and sales during FY14 were 13,836 MT and 13,853 MT respectively. ‘raw material cost had gone up by Rs 2,600 per tonne and sales realization has gone down by Rs 820 per tonne. High grade ore was purchased from OMC had pushed the cost further,” the report said.
However, the company said that it had taken series of steps to reduce its operational cost in 2014-15. “Procurement of serpentinite from IMFA at lower price for use in place of high cost magnesite was one of the steps taken up the company to reduce cost,” the report said.
It also said that tender was floated inviting offers from various manufacturers for supply of molasses, which would rationalise costs. “Steps had been taken to recover some quantity of medium grade ore available at Talangi mine to use the same in the plant,” it said adding that optimal quality of coke dust was used to reduce cost of production.
