Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant is targeting Rs 19,000 crore revenues and also net profit during the current fiscal, after suffering losses for the past few years, a senior official said.
The company clocked about Rs 16,500 crore revenue during the last fiscal with a loss of about Rs 800 crore.
RINL suffered Rs 1,236 crore loss in 2016-17 on turnover of Rs 12,706 crore, the official said adding the company reported Rs 200 crore EBIDTA margins in 2017-18.
"Going by the trend we expect to touch Rs 19,000 crore turnover during the current year. In March itself we registered Rs 20 crore profit before tax, it reflects the mood of the market. Overall we expect to make profits this year," the official told PTI.
The performance of the PSU has improved basically on the back of operational efficiency and also demand surge in the market, the official added.
"In 2018-19 RINL expects targeted to produce 6.4 million tonnes of hard metal, 6.3 million tonnes of liquid steel and 5.7 million tones of saleable steel. We expect to realise Rs 3,500 crore to Rs 4,000 crore per million tonne of steel as per the prevailing pricing scenario," the official hoped.
RINL had in December added one million tonne to the existing 6.3 million tonne per annum taking the total capacity to 7.3 million tonne per annum by investing Rs 4,000 crore through modernisation of the plant.
RINL Chairman and Managing Director, P Madhusudhan recently said the steel maker has improved its market share of bars and rods from 8.4 per cent in 2016-17 to 9.5 per cent in 2017-18 (up to February, 2018).
With realisation of rated capacities of expansion and modernisation projects by 2018-19, the market share of RINL is poised to improve further, he added.