After three consecutive years of losses, Indian state-run steel producer Rashtriya Ispat Nigam Limited (RINL) has reported a net profit of $10 million for the fiscal year ending March 31, 2019, according to a statement issued by the company.
The company said that the net profit is a result of RINL being successful in increasing its sales turnover to $3.02 billion, adding that “a buoyant domestic steel market helped the company improve per ton margin realizations, which was reflected in achieving the financial turnaround”.
According to the company, RINL does not have any captive source of either iron ore or coking coal and is dependent on commercial sourcing of these two critical raw materials.
If the steel producers had its own source of raw materials, it would have been able to improve per ton margin realizations by at least $33/mt from long product sales, the primary product produced by RINL, the company statement said.
For the 2019-20 fiscal year, RINL said it has set a target of producing 6.4 million mt of liquid steel and 5.8 million mt of finished saleable steel.