Rashtriya Ispat Nigam Limited, the corporate entity of Visakhapatnam Steel Plant, has recorded a growth in sales over 25% and the turnover for his fiscal year is set to cross the ₹20,500 crore mark. This was disclosed by the Chairman and Managing Director of RINL P.K. Rath, at the annual press meet, held here on Friday.
According to Mr. Rath, the sales volume has improved by 9 % over the last year. He also pointed out that even though there was a considerable increase in raw material cost and depreciation by 38%, the company has optimised its operations and could reduce the loss at Profit Before Tax (PBT) level by 88%, as against loss of ₹1,402 crores in the last year.
“We are expecting to end the year with a gross margin of around ₹1,770 crore, as against ₹254 crore in the last year,” said Mr. Rath.
The CMD also pointed out that all expansion and modernisation programmes were in sync and were commissioned and ready for operation.
He also said that the growth in production areas were to the tune of 10 to 12%.
Elaborating on the expansion and modernisation, he said coke over battery number 5, central despatch yard, Kanithi Balancing Reservoir -2 projects were progressing at a brisk pace and will be ready for commissioning in a short time. “The work at the forged wheel plant Rae Bareilly, Uttar Pradesh, is also picking up pace and will be commissioned by September in this year. This plant will cater to the needs of all locomotive wheels of the Railways,” he said.
Giving details on the production front, Mr. Rath said that the growth in hot metal was around 13%, finished steel 10%, saleable steel 11% and value added steel 34%.
New project
“The labour productivity was the best since inception and specific water consumption of 2.33 cum/tCS for the year was comparable to the best in the world. The usage of pulverised coal injection in the blast furnaces has also improved by 10% over the last year,” he said.
Mr. Rath also informed the media that RINL will shortly sign an MoU with KIOCL (Kudremukh Iron Ore Company Limited) for setting up a pellet plant at Visakhapatnam and has added a branch at Indore.
“Our international operation has commenced with the opening of an office at Colombo and we are in negotiations with Indian Waterways Authority of India Limited to open outlet in Paandu Port in Guwahati and utilise the multi-modal coastal cum waterways route to cater to the North East,” said Mr. Rath.
Referring to question on the investment made by RINL to own large deposit of iron ore mines in Odisha by picking up strategic control over Eastern Investments Ltd, Mr. Rath said that RINL has already paid major chunk of the Supreme Court imposed penalty of ₹1,470 crore on OMDC and we have asked for control over at least two mines. “We are in negotiations for the third,” he said.
