Gujarat NRE Q2 net profit down by 50%

Due to a lean second quarter of fiscal 2010-11, Gujarat NRE Coke Ltd. has posted a net profit of Rs 9.92 crore as against Rs 20.21 crore for the corresponding period last year, a fall by around 50 per cent.

"The second quarter was a relatively lean period compared to Q1 due to the monsoons, particularly this year we got excess rainfall. However with renewed demand, the price of coke has started rising since October after remaining sluggish for the entire of Q2. The price of coke is expected to rise further in coming months," said Arun Kumar Jagatramka, chairman and managing director, Gujarat NRE Coke Ltd.

The total income for the quarter ended September 30, 2010 stood at Rs 243.57 crore, as compared to Rs 383.41 crore for the same period last fiscal. In terms of cumulative half yearly figures, the total income was Rs 695.72 crore, registering a marginal increase over Rs 693.45 crore achieved during the same period of FY 2010.

Speaking on the company's Australian operations, where Gujarat NRE owns and operates two premium quality hard coking coal mines, Jagatramka said, "We have been able to nearly double our production to 0.46 million tonnes in Q2 2010 compared to 0.26 million tonnes in second quarter 2009 from our Australian mine. NRE Wongawilli Colliery had also achieved the production target of over 10,000 tonnes in a day on August 31, 2010."