Vishakhapatnam: The Vizag based Rastriya Ispat Nigam Ltd.(RINL), is set to make a turn around in 2018-19 after a gap of three years.
” We expect to be back in the black by posting a net profit in the current fiscal,” said the RINL CMD P Madhusudan. The CMD’s confidence stems from the fact that the country’s second largest steel making company in public sector has posted a net profit in the month of March 2018.
The company, which has a steel making facility in Vizag, has posted an EBITDA of Rs 200 crore in 2017-18.
The stabilization of the expansion and modernisation programmes and the market looking up, RINL is certainly going to reap benefit this fiscal, said Madhusudan .
RINL exports products to US and South-East Asia besides selling in the domestic market.
The Vizag Steel plans to ramp up the capacity to ultimate 9 mtpa from the present 6.3 mtpa. The company is going to commission its wheel plant at Rae Barelli in January 2019. Revenue from the wheel plant would be around Rs 560 crore per annum.
The company is currently sourcing iron ore from NMDC and Odisha Mining Corporation (OMC). It is proposing to sources more iron ore from OMC as it is cheaper in terms of landing cost. RINL is also going to have a joint venture with AP Mineral Development Corporation for raw material linkages.