NINL to taste first profit in 2004-05

The Nilachal Ispat Nigam Ltd (NINL), jointly promoted by MMTC and the Orissa government, is all set to taste its first year of profit in 2004-05 after going into production in early 2002.

The company is expected to notch up a net profit of Rs 40 crore in the current fiscal. This comes in the backdrop of a sterling physical performance by the company supported by favourable market conditions.

"We are earning a net profit of Rs 20 to 25 crore every month this fiscal. But after adjusting against the accumulated losses, we may end up with a profit of Rs 40 to Rs 45 crore", said a senior official of the company.

On physical performance front, the company has increased its pig iron production by 24.51 per cent in the first 10 months of 2004-05 with respect to the corresponding period in the last financial year.

NINL has loaded for export 251037 tonnes of pig iron, which is the best ever figure. The previous best was recorded in 2002-03 at 241051 tonnes. With this, NINL is now all set to become the largest producer and exporter of pig iron in the country by the end of the fiscal.

During the last few months, the company has scaled new highs in every succeeding month with respect to performance of the coke oven and by product plant, blast furnace, pig casting machine and handling of wagon tippler and railway rakes. In January 2005, NINL achieved 15 milestones in its production and dispatches.

A record number of 88 rakes were handled during the month consisting of 58 incoming rakes and 30 outgoing rakes. Also around 26000 tonnes of granulated slag was exported to Bangladesh for the first time.

During the last month, more than 19500 tonnes of LAM coke was despatched to Visakhapatnam Steel Plant, Mesco and Kalinga Iron Works. Despite the setback suffered in January due to shortage of iron ore fines, the sinter production for the month stood at 97608 tonnes.

The company, meanwhile, has been regularly paying monthly interest dues to the banks and financial institutions on the loans availed by it.