Post its blast furnace capital repair work, public sector steel maker Neelachal Ispat Nigam Ltd (NINL) is clawing on the recovery path. The turnaround signs for the MMTC promoted steel company were manifested in its April-August performance when NINL raked in INR 4000 earnings per tonne of pig iron sales.
In the comparable period of 2017-18, NINL was EBITDA (earnings before interest, taxes, depreciation, and amortization) negative. With operating income profit during the first five months of the current fiscal, NINL is eyeing to reach a stage of net profit.
SS Mohanty, vice chairman, and managing director at NINL attributed the company’s turnover during the five months period also jumped by INR 298 crores than the same period of the last FY.
The rise in turnover and positive EBITDA is attributed to the considerable increase in production after the resumption of Blast Furnace operation in May 2018 after the capital repair.
The production capacity of the Blast Furnace has been doubled. Presently, average production of the hot metal is about 3000 tonne per day. Steel Melting Shop (SMS) will be fully operational by the end of October 2018 which will lead to the production of billets for better value addition and increased productivity & profitability.
With the operation of its captive iron ore mines by end of this fiscal, NINL will turn around and will make the net profit.
NINL has achieved the highest ever production since inception in all operating areas in July 2018 with hot metal of 83690 tonnes, Pig Iron of 76687 tonnes and Sinter of 132990 tonnes and has also crossed all-time record despatch in all segments and is expecting to continue the same in the future.
The company has signed a MoU (memorandum of understanding) with National Aluminium Company (Nalco) to set up coal tar distillation plant on the joint venture (JV) mode for coal tar generation in NINL s Coke Oven. NINL will start manufacturing of TMT bars under NINL brand in this fiscal and produce wire rods through conversion of billets.
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