Despite the Covid-19 pandemic and the Centre’s move to privatise Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP), it has achieved a sales turnover of Rs. 17,980 crore. It has registered a record 14 percent growth over the previous year.
In the 39th Annual General Meeting (AGM) of Rashtriya Ispat Nigam Limited (RINL) on Thursday, for the financial year 2020-2021, the Chairman and Managing Director, Atul Bhatt addressed the shareholders of the Navaratna public sector. On behalf of the President of India, Secretary to the Ministry of Steel, Subhash Kumar attended the AGM virtually.
Addressing the shareholders, Mr Bhatt said that the inventory of steel could be reduced by 0.290 million tonnes during the year by increasing the exports to 1.308 million tonnes from 0.497 million tonnes in the previous year. Mr Bhatt informed the shareholders that with the gradual opening of economic activity in the country, the production was stepped up by reverting to operating three blast furnaces from November 2020. Since then, the company has been achieving profit after tax (PAT). With this, the company has reduced the net loss to Rs. 789 crore from Rs. 3910 crore in the previous year.
Mr Bhatt added, for the year as a whole, the company could achieve positive Earnings Before Interests, Taxes, Depreciation and Amortisation (EBITDA) of Rs 1,400 crore as against negative EBITDA of Rs 1,499 crore in the previous year.
In March 2021, VSP had achieved a sales turnover of Rs. 3,300 crore and a sales volume of 7,11,000 tonnes, an all-time record for the company. The then CMD, RINL, PK Nath, had said that the company had registered a strong performance by recording sales turnover of around Rs. 18,000 crores during the just concluded 2020-21 financial year, second-highest since the company’s inception. He had said that the figures represent an impressive growth of 13 percent and the sales volume reached 4.45 million tonnes, with a growth of 4 percent. RINL registered a net profit of about Rs. 740 crore in the previous 4 months (Dec-Mar 2021). This sales turnover is 42 percent more than the previous best of Rs. 2,329 crores in March 2019.
Discussion about this post