Though sales have been good but falling steel prices have impacted margins.
“The pressure on price, as the market continues to be sluggish is causing strain on the profit margins,” remarked a company official adding that much efforts have been taken to reduce input cost.
In the last couple of months, prices by raised were Rs 1,000/MT looking at expensive imported material.
RINL has contracted coking coal from its Australian suppliers cheaper by up to $ 7 (around Rs 370) a ton for the current quarter over the previous one.
In January 2013, RINL produced 3% more of finished steel i.e. 2.59 lakh tons in comparison to the same month last year.
RINL sales moved up by 13% to 2.8 lakh tons in January 2012 as compared to December 12.
The sales volume of 2.8 lakh tonnes and sale turnover of Rs 1,260 crore are the best achieved in the current financial year.
Sourced
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