RINL expects to be in the black in 2018-19

Rashtriya Ispat Nigam Ltd (RINL), also known as Vizag Steel, is expecting to be back in the black in the 2018-19 fiscal after a gap of three years, a company official said today.

In the last fiscal, RINL, the second largest steel-making company in the public sector, posted an EBITDA of Rs 200 crore. "In March 2018, RINL had posted a net profit. We expect to be back in the black by posting a net profit in the current fiscal," CMD of RINL, P Madhusudan said.

He told reporters here that the outlook for the steel industry is positive, as all the consuming sectors were looking up.

RINL, Madhusudan said, was now reaping the benefits of expansion and modernisation, which has stabilised by now coupled with steady markets, mostly in the southern region.

The company, which was sourcing the crucial iron-ore linkage from NMDC and Odisha Mining Corporation (OMC), was trying to increase the volumes from the latter as it was cheaper in terms of landing cost, he said.

It was also in the process of forging a JV agreement with AP Mineral Development Corporation for raw material linkages, he said, adding, that RINL would be given on preferential basis.

The company was exporting wire rods to the US markets and was getting a good price, Madhusudan said.

"Since the demand for wire ropes was good within India, any problem in the US market will not affect RINL," he said.

RINL exports its products to the markets of south-east Asia, he said, and earned Rs 1,700 crore from shipments last fiscal, registering a 60 per cent growth.

Madhusudan told PTI that once the rated capacity went up to 7 million ton in 2018-19 from 6.3 mt, RINL would be able to stretch it up further to 8 mt. The company would commission its wheel plant at Rae Barelli in January 2019, he said. Revenue from the wheel plant would be around Rs 560 crore per annum.