Rashtriya
Ispat Nigam Ltd Company Analysis Report
Background
Rashtriya Ispat Nigam Limited (RINL) — a public sector
steel-manufacturing unit — is one of the emerging companies of the Indian steel
industry. It is also known as Visakhapatnam Steel Plant (VSP).
RINL, a central government-commercial enterprise is a holding company of
VSP, Vishakhapatnam (Andhra Pradesh). The
company commenced operations way back in 1971, with a capacity of 2.656 MT of
saleable steel
Product
mix
The company's product range comprises wire rods, rounds, angles,
channels, beams, squares, blooms, saleable billets, pig iron, coal chemicals,
granulated slag and other by-products. VSP also ventured into the ribbed
reinforced bars with low carbon content production for the very first time.
These products find application in the construction, infrastructure,
railways, power, oil, defence, transport and ship building sectors, whereas
wire rods are used in the wire drawing industry.
Technology
RINL produces steel through the blast furnace route.
Plant location
RINL is located at Vizag (Visakhapatnam
|
Location
|
Capacity
|
|
|
|
Products
|
('000 tonnes)
|
|
Vishakhapatnam (
|
Blooms
|
710
|
|
|
By-products
|
186
|
|
|
Granulated slag
|
1,440
|
|
|
Pig iron
|
556
|
|
|
Saleable billets
|
246
|
|
|
Wire rods
|
850
|
|
Source: Prowess
|
|
|
Financials
Table 21: Rashtriya Ispat Nigam Ltd -Key
financial indicators
|
|
|
31-Mar-06
|
31-Mar-07
|
|
Operating income
|
Rs million
|
85,177
|
91,659
|
|
Operating margins
|
Per cent
|
26.5
|
25.5
|
|
Net profits
|
Rs million
|
14,395
|
15,683
|
|
Net margins
|
Per cent
|
16.9
|
17.1
|
|
RoCE (return on average capital employed)
|
Per cent
|
20.8
|
20.7
|
|
Gearing
|
Times
|
0.7
|
0.6
|
|
Interest coverage
|
Times
|
75.7
|
70.7
|
|
Current ratio
|
Times
|
4.7
|
4.4
|
|
Source: CRISIL Research
|
|
|
|
