Vizag Steel aims to compensate its losses
According to the latest news in the market, Rashtriya Ispat Nigam Ltd (RINL) or Vizag Steel has recently announced that it has paid its entire debt of Rupees 7.73 billion ($171 million) in the first half of the current fiscal.
Furthermore, the company aims to compensate its accumulated losses worth Rupees 45 billion ($996 million) in the next four or five years, regarding the upward trend in steel prices and the strong demand in the global market. In the first half of the current fiscal, the company achieved a net profit of Rupees 4 billion ($88.5 million) from the sales of Rupees 25.5 billion ($564 million), which indicates a six fold increase, compared with the figures recorded in the same period last year. The officials from the company expect that the net profit for the full year to reach up to Rupess 10 billion ($221 million). The profit recorded in the previous fiscal was Rupees 5.2 billion ($115 million).
Again in the same period, domestic sales with an increase by 27% increased to Rupees 22.4 billion ($495.5 million), against Rupees 17.7 billion ($391million) recorded in the corresponding period last year.
The officials from the company also state that, the company has some plans to expand its mill. Vizag Steel has hot metal
production capacity of 3.4 million tons and saleable steel capacity is 3 million tons per annum. The officials state that, they plan to increase the capacity to 5 million tons in the first phase and to 10 million tons in the second phase.