India’s Neelachal Ispat Nigam Limited (NINL), a subsidiary of Tata Steel Limited, achieved operational profits (earnings before interest, tax, depreciation, amortisation) of INR 12 billion ($140 million) with a sales margin averaging at 19 percent during the fourth quarter (January-March) of the fiscal year 2024-25, marking a turnaround into profitability within three years of its acquisition by Tata Steel Limited through the government’s privatisation program, according to financial statement released by Tata Steel Limited on Thursday, May 22.
“This demonstrates the turnaround of the company, which was closed at the time of acquisition three years ago,” said Koushik Chatterjee, executive director and chief financial officer of Tata Steel said.
According to Tata Steel, which holds a 99.66 percent equity stake in NINL, the company operated at its rated capacity or the maximum output achievable under normal operating conditions during the year.
NINL will play a critical role in Tata Steel’s growth strategy and is key to expanding its long products portfolio, the company said.
Tata Steel has drawn up a plan to expand NINL’s capacity to 9.5 million mt per year over the next 10 years. In the first phase, the capacity will be ramped up from 1 million mt per year to 5.5 million mt per year, the company said.
In 2024-25, NINL completed a capital expenditure of INR 3.4 billion ($40 million) funded through internal accruals for sustenance activities, which included successful commissioning of the coke oven battery along with the coke dry cooling plant, the coal and coke handling system, and the effluent treatment facility, the company said.
