THIRUVANANTHAPURAM: The Kerala Minerals and Metals Ltd (KMML), one of the few state-owned enterprises in Kerala that has consistently stayed profitable, has seen its bottom line take a sharp knock in FY25, with net profit more than halving to Rs48.96 crore from Rs99.79 crore in FY24.
This slide came despite a marginal increase in operating income from Rs1,038.14 crore to Rs1,143.29 crore during the year.
KMML has ambitious expansion plans to raise titanium dioxide (TiO₂) capacity from 40,000 metric tonnes (MT) to 60,000 MT per annum in the first phase and later to 100,000 MT, though these projects await state government clearance.
The drop in profitability, reflected in CRISIL Ratings’ recent revision of the company’s outlook from ‘Positive’ to ‘Stable’, stems from lower-than-expected revenue growth and a squeeze in operating margins.
KMML’s operating margin declined to 4.73 per cent in FY25 from 8.37 per cent in FY24, weighed down by rising production costs and a one-time expense linked to relocation of radioactive waste materials.
The company also witnessed a 6.6 per cent decline in titanium dioxide (TiO₂) volumes – its key product line – though higher selling prices helped partially offset the fall. The rating agency expects margins to improve from FY26, aided by volume growth and stable realisations.
Despite the profit setback, KMML’s balance sheet remains robust. With net worth of Rs1,281 crore and limited debt (total loan facilities of Rs305 crore), the company’s leverage remains modest, reflected in a total outside liabilities to adjusted net worth ratio of just 0.54 times as of March 31, 2025. Liquidity, too, is strong, backed by an unencumbered cash balance of Rs 539.31 crore and a current ratio of 1.92 times.
KMML, based in Kollam, is engaged in mining, mineral separation, and the production of titanium dioxide pigment and titanium sponge. The company’s operations are highly regulated and occasionally face socio-political challenges tied to environmental concerns in coastal mining areas.
While KMML’s financial footing remains strong, the profit slide marks a rare reversal for one of Kerala’s few consistently performing public sector enterprises — a reminder of the challenges even well-run state firms face amid rising costs and regulatory constraints.
