State-owned Rashtriya Ispat Nigam (RINL) today signed a Memorandum of Understanding (MoU) with the Steel Ministry envisaging a 10% increase in turnover at Rs 15,000 crore in the next financial year.
"The MoU envisages the highest ever turnover of Rs 15,000 crore, which is 10% above the target for 2011-12," RINL said in a release.
RINL has set a target for producing 18% growth in saleable steel over the current fiscal though one of its blast furnaces is going for major repairs in the last quarter of the current fiscal, it said.
In the MoU, the Vizag-based steel maker also said it was targetting a 30% growth in gross margin for 2012-13.
"The most challenging target of Rs 1,275 crore has been set for gross margin despite significant reduction in interest income, overheads due to likely disruptions in production from existing units during commissioning and stabilisation phase of 6.3 million tonne facilities, when materials and utilities may have to be diverted from existing units," RINL said.
RINL has 3.6 million tonne steel-making capacity now at its lone facility at Vizag in Andhra Pradesh. It is in the final satges of completion of its Rs 12,000 crore capacity expansion programme. Post-expansion, RINL's capacity will go up to 6.3 million tonne per annum.
The state-run steel maker may launch its initial public offering in the first half of the 2012-13 fiscal.