… after a troubled few years
Resource: The Natural Resources Development Corporation Ltd (NRDCL) recorded an 8.1 percent increase in revenue in 2015 after a troubled few years as a result of the economic downturn.
The company earned Nu 428.382 million (M) last year compared to Nu 396.6M in 2014.
NRDCL officials attributed the increase to higher sales of timber and sand last year compared to the previous year.
The company recorded a profit after tax of Nu 15.709M as compared to 5.846M in 2014.
The performance is attributed to an increase in sale of timber and sand, control in expenditure and reduction in loss of crushing plants with the sale of two plants and suspension of three others.
The company’s performance suffered badly following a slow down in the construction sector between 2012 until 2014 with the economy being hit by the rupee shortage. The company had around 913,000 cubic feet (cft) of unsold timber at the end of 2013. It also revised its initial timber harvest target of 2.3M cft in 2014 to 1.7Mcft.
The company took drastic measures last year selling two of its stone crushing plants, suspending operations in three quarries, closing two of its eight regional offices, and cutting down the number of employees. It also conducted a financial review, and its recommendations were implemented.
NRDCL officials said that the financial situation is expected to improve with the creation of a reserve fund last year with an initial amount of Nu 5M for future investments.
“The company plans to set aside some fund every year to add to this reserve fund,” NRDCL managing director Karma Dukpa said at the annual Druk Holding and Investments companies press conference last week.
The company sold 270 metric tonnes of briquette, supplied 400 cubic metres of free firewood to the cremation ground worth Nu 343,515 through the People’s Project. It supplied subsidised timber to rural households worth Nu 3.19M.
NRDCL extracted 318,443 cubic metres of sand against a target of 328,278 cubic meters in 2015 and disposed 330,132 cubic metres against its target of 330,915.
However, it generated more revenue from the sale of sand earning Nu 55M in 2015 compared to over Nu 45M in 2014.
NRDCL officials said that the corporation will establish an additional dredging machine this year following high customer preference for dredged sand due to its superior quality.
To overcome challenges of depletion of natural sand deposits and reduction in extraction sites, the company has planned to set up more dredging units.
The company handed over to the forest department 2,177 acres of established plantations across the country. They were planted between 2007 and 2013 with a survival rate of more than 70 percent.
NRDCL has 322 employees.