Highlights of the call

They specified that the call was for broad performance and prospects and any question on volume etc will be taken afterwards.

The company started business in 1966 with turnover of Rs 2.10 lakh and now after 50 years it has turnover of Rs 1800 crore.

This has been possible because of the futuristic vision.

The company has formed a high power strategic committee as the company thinks that it is important to know where they are now but more important to know where it plans to go.

GMDC operates its five lignite mines, namely, Panandhro, Mata-No-Madh, Rajpardi, Tadkeshwar and Bhavnagar Lignite Mines. It also has Gadhsisa group of mines for mining Bauxite.

During the quarter the company saw shortfall in lignite business due to early monsoon, but it is confident that it will recover by the year end and will be able to do 11.50 million tonnes.

The company has entered into a JV with Nalco for deep project in bauxite.

The company has 80 million tons of bauxite reserve.

GMDC is aggressively looking for more mines for the future. Especially in lignite business, it plans to acquire more mines going forward.

The company's acquisition of 12 mines are in various stages of completion which have reserves of 342 million tons.

Considering that the current production is 11 million tones, it gives the company good comfort.

June 2013 quarter it did 2.4 million tons, it plans to do 1.4 toms in second quarter, 3.5 million in fourth quarter and 4.4 million in fourth quarter. So it will do 11 million tons in FY 2014.

The company is actively looking for wind power business. Its 50 MW project in Dhanu will be completed in August 2013. It has planned another 50 MW project to be completed in next year.

The company has so far invested Rs 900 crore in Wind power projects. It will have PAT of 12%.

The company is also looking at new business opportunities and will try to capitalize on it.

The company is facing technical problems in Tadkeshwar and Bhavnager projects pertaining to land acquisition and is working hard on solving the same at the earliest and expects to complete the same in next 6 months.

Going forward there will be auction of 5 lignite blocks out of this 4 will be in Gujarat. 3 mines are commercial mines.

The company is confident about its future as it is confident of banking on new mines.

1 new mine will come up in last quarter of FY 2014. Then in FY 15-16 one more will come up in kutch. Another new plan will come out in FY 16-17. And so on.

The company has target of growing volume by 28% in FY 2014-15, 19% in FY 2015-16, 20% in FY 16-17 and 22% in FY 2018-19.

The company is expecting annual growth of 15-20% growth in lignite production for few years going forward on back of new mines. There are 12 new mines in pipeline.