The CMD said talks are on with the Hyundai and Posco for a possible joint venture to manufacture auto-grade steel.
After incurring losses for the past three years, state-owned Rashtriya Ispat Nigam Limited (RINL) on Monday bounced back to the black, reporting a `75 crore net profit for the 2018-19 fiscal. The PSU steel-maker had reported `1,321 crore loss in the 2017-18 fiscal, `1,236 crore in 2016-17 and `1,421 crore in 2015-16.
RINL’s CMD P K Rath said that increase in sales, better realisation and a significant improvement in the techno-economic parameters have contributed to the profitability and hoped that the trend would continue in the 2019-20 fiscal given the fact that the steel market will remain “good” with good domestic sales.
Rath said sales turnover of the company hit a record `20,844 crore during the 2018-19 fiscal, registering around 25% growth over `16,618 crore recorded in the 2017-18 fiscal. Higher sales and better price of the metal also helped. RINL sold 5 million tonne (mt) of steel in 2018-19 over 4.5 mt a year ago. Hot metal production increased to 5.77 mt.
“In the first quarter of the 2018-19 fiscal, domestic steel market was buoyant. The subsequent two quarters were subdued, but the final quarter was flat. I believe market will remain good in the current fiscal as construction and manufacturing sectors are looking up,” he said.
RINL does not have captive sources of raw material. It has to procure both iron ore and coking coal from the market. Had it have captive sources of iron ore, realisation would have been better by at least `2,300 per tonne. RINL produces long products, which cater mainly to construction sector.
RINL hopes to achieve a production of 6.5 mt hot metal, 6.4 mt liquid steel and 5.8 mt saleable steel. Its turnover is likely to touch the `25,000-crore mark in the 2019-20 fiscal, he said. The CMD said talks are on with the Hyundai and Posco for a possible joint venture to manufacture auto-grade steel.