Despite an 8 per cent growth in sales volumes, Rashtriya Ispat Nigam Limited took a hit on its net margins due to lower realisation in the just-ended fiscal.
"During 2013-14, our average price realisation was about Rs 33,500 as against Rs 36,000 per tonne in 2012-13, as a result total sales stood at Rs 13,527 crore during the period as against Rs 13,600 crore in the previous year," P Madhusudhan, chairman and managing director, RINL, told mediapersons here.
Net margins in 2012-13 stood at Rs 353 crore, but it would not cross Rs 300 crore this time, he said.
With the expansion project nearing completion, the company is targeting a growth of 40-45 per cent in hot metal production and 25-30 per cent in sales turnover in 2014-15. RINL has undertaken a 6.3-million tonne expansion project.
The CMD said since January 2012, Visakhapatnam Steel Plant was increasing steel prices every month, hence it expected sales to touch Rs 17,000-17,500 crore.
"In just-ended fiscal our exports reached Rs 750 crore, which is 25 per cent higher compared with the previous year. We are entering new markets like Sri Lanka and a few African countries this year, and this is also likely to add to exports growth," he said.
Over the next two year, VSP would spend Rs 4,000 crore to modernise some of its existing units, post which its capacity would increase by another one million, he added.
