RINL losses increase in FY23, and production declines as a result of limited liquidity
TheHindu
India
12-12-2023
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Due to liquidity problems, Vizag Steel, also known as Rashtriya Ispat Nigam Ltd (RINL), has seen a decline in production and an increase in losses. Due to financial difficulties, the PSU steel manufacturer has also postponed paying salaries for September and October.
The company declared a loss of nearly ?2,859 crore for FY-23; however, losses increased to ?2,058 crore for the first half of FY-24 (April–September), which is nearly 70% of the figures reported for the entire year 2022–2023 years.
The amount of loss before taxes was ?3,237 crore, compared to ?2,269 crore for H1 FY-24.
Interestingly, the steel manufacturer reported net profits in two of the previous five years—at ?96.70 crore in FY-19 and ?913 crore in FY-22—according to a response submitted to the Parliament. In FY-20 and FY-21, the respective net losses were ?3,910 crore and ?1,012 crore.
The operating revenue ranged from ?28,359 crore (highest in the previous five years) in FY-22 to ?15,920.50 crore (lowest) in FY-20. Revenue for H1FY-24 came to ?11,641.32 crore.