Rashtriya Ispat posts record turnover in FY12 at Rs 14,457 cr

Sales grow 6.5% at 3.5 mn tonnes, firm may file draft prospectus for IPO by June

State-run Rashtriya Ispat Nigam (RINL) today said it clocked the best-ever annual turnover in 2011-12 at Rs 14,457 crore, buoyed by a growth of 6.5% in sales.

"Our sales were up 6.5% in 2011-12 at 3.5 million tonnes of steel. This has helped us to clock our best-ever turnover at Rs 14,457 crore, up 26% than the previous fiscal," a company official said.

The official said the company produced 3.4 million tonnes in the last fiscal, utilising 113% of installed capacity.

Of the total sales, 2.25 million tonnes were of special grade, which helped the company to fetch a premium, he said justifying the "robust" growth in the topline.

"This will also help the company to record highest-ever profitability," he added.

With higher sales, RINL has increased its market share in eastern, northern and western regions. Its sales were up 22% in east, 13% in north and 10% in west, during the last fiscal.

The higher sales have also helped the company to bring down its inventory level to the lowest since inception at 72,000 tonnes, which is equivalent to the production of just six-seven days, the official added.

RINL has set a target of Rs 15,000 crore turnover for the current fiscal. It is likely to file the draft prospectus for its upcoming initial public offer (IPO) by June.