Rashtriya Ispat Nigam Ltd (RINL) today said its revenue dipped to 5.8% at Rs 13,650 crore in2012-13 fiscal due to checked steel demand. The Vizag Steel Plant (VSP) had watched Rs 14,450 crore sales in the previous fiscal, a company official said. “The main reason for the dip in sales is subdued demand for steel for almost the entire fiscalâ€Â, he added.
Steel Plant at Visakhapatnam has witnessed the best-evermonthly sales of Rs 2,136 crore in March 2013, with growing sales of Rs 13,650crore in FY-13. Exports at Rs 601 crore rolled a growth of 45% and countrysales perked up 15%. Improved growth in production of hot metal and iron & steel with acumulative production of 3.81 million tons and 3.4 million tons respectively isseen. Captive power generation at 211 Mw during 2012-13 was the utmost duringthe last five years. This aided the company to sustain the production level althoughpower restrictions imposed by the state grid during the last eight months, acompany release stated.
The steel plant also recorded improvedperformance in various techno-economic parameters with 8% growth in labourproductivity; 6% in specific water consumption; 4% in sinter productivity; and12% in average converter life. Expenditure on CSR was 11% higher while investment in R&D grew 52%during the period. The capex outflow was around Rs 1,300 crore. VSP paid Rs1,652 crore during 2012-13 to the Centre towards recovery of privileged equityand payment of dividend. Thedistribution network also increased 54%, while the sale of branded productsgrew 6%.
RINL is fullyprepared to meet the growing requirement of power with the beginning of theexpansion units that will take the company’s steel-making capacity to 6.3million tons per annum (mtpa) from 2.9 mtpa now, it added. In 2013-14, RINL hastargeted a growth of 20-25 percent in various areas, considering productionfrom the new expansion units.
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