Annual Report for 2011-2012 - Vizag Steel

RASHTRIYA ISPAT NIGAM LIMITED
It may be observed from the above that during
2010-11, MM Dept. awarded tenders worth of
` 8,525 Crores and integrity pact was covered for
tenders worth ` 5,244 Crores ( 61.5%). Similarly,
during 2011-12, integrity pact was covered for tenders
worth ` 5,863 Crores (61.8%) against total tender
value of ` 9,481 Crores.
(`Crores)
The profit for the year was impaired adversely by
increased input prices mainly that of Iron ore &
imported coal. However, the adverse impact was offset
by increase in net sales realization of saleable steel,
through better market mix and better efficiencies in
production.
Projects
Expansion to 6.3 Mtpa Liquid Steel :
Imported coking coal
Ferro alloys + refractories
+ spares & consumables
2011-12 2010-11
Total IP Total IP
Covered
Covered
5001.16 5001.16 4514.57 4514.57
1240.68 861.80 1105.52 729.54
The first phase of Expansion to 6.3 Mtpa liquid steel
has been brought to the stage of hot commissioning.
In addition to increase in capacity, the adaptation of
newer technologies are likely to help in improving
environmental measures, reduction in energy
consumption, improvement in productivity and yield etc.
Status of Implementation of current expansion
Units already commissioned:
Major indigenous raw
materials
Financial Management:
3238.69 -- 2905.35 --
9480.53 586.96 8525.44 5244.11
The focus on fiscal measures in the Company continued
for improving operational efficiency and optimizing
expenditure on interest, bank charges and insurance
while improving earnings on surplus funds.
A comparative performance of major financial
parameters is given as below:
` In Crs
2011-12 2010-11
Sales Turnover 14,462 11,517
Profit before Interest, depreciation
and tax (EBIDTA) 1,645 1,412
Less: Interest and Finance charges 191 164
Less: Depreciation 345 266
Profit before Tax (PBT) 1,110 982
Less: Provision for Tax 359 324
Profit After Tax (PAT) 751 658
Net Worth 13,659 13,229
EBIDTA to Net Sales (%) 12.52 13.49
Return (PAT) on Net worth (%) 5.50 4.97
EBIDTA to average Capital employed (%) 33.53 25.09
Earnings per share (` 1000 each) 126.18 85.79
Blast Furnace (Commissioned in April 2012)
Caster to produce billets & rounds- (Caster 2
commissioned in May 2012)
Oxygen plant
Raw material handling plant
Chilled water plant
Ladle heating furnace-Caster shop
Reheating furnace of WRM
Cranes for production in SMS, WRM & BF
Water plant
Electrical System-34 Substation and connecting
facilities
Other utilities
Blast Furnace is likely to be ready shortly for starting
Hot Metal production. Heat is already taken in LHF &
Caster. Converter is getting ready. (BF 3
commissioned on 24 th Apr. 2012 and Caster-2
commissioned on 12 th May 2012 and are under
stabilization).
Stage - II (Special Bar Mill & Structural Mill) :
Second stage of expansion includes installation of
Special Bar Mill and Structural Mill. Major Civil &
Structural works are completed. Equipment supply and
erection is in progress. Several dependent units viz.,
water system, power system etc are getting
commissioned matching the requirement.
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