The Hindu : VSP profits on upswing in current fiscal

Online edition of India's National Newspaper
Thursday, Dec 12, 2002

Southern States

Southern States - Andhra Pradesh

VSP profits on upswing in current fiscal

By Our Staff Reporter

VISAKHAPATNAM DEC. 11. The Visakhapatnam Steel Plant's net profits continue to be on the upswing during the current fiscal in marked contrast to its financial performance during 2001-02.

An official spokesman of the company on Wednesday said that the accumulated net profits touched a high of Rs.147 crores by the close of November, compared to the net loss of Rs.142 crores it suffered during April-November last fiscal. A significant feature of the turnaround was that the company had consistently posted net profits for the past 12 months.

Further, the company benefited by as much as Rs.106 crores by containing interest incidence, which helped it repay its term loans of Rs.721 crores through internal resources (Rs.386 crores) and the rest by swapping with soft interest loans during this period.

The spokesman said the upbeat mood in the company was reflected by its production and marketing performance. The VSP realised sales turnover of Rs. 390 crores last month, which was the highest for any month in the current fiscal. This helped the cumulative sales turnover zoom to Rs. 2,772 crores during April-November, a 15 per cent growth over the same period last financial year. The company had the comfort of encouraging domestic and international markets with sales within the country rising by 11 per cent and exports by 47 per cent.

On the production front, the steel plant produced 2.59 million tonnes of hot metal, 2.21 million tonnes of liquid steel and 1.95 million tonnes of saleable steel during April-November, which marked a 17 per cent, 13 per cent and 11 per cent growth over the performance of the corresponding months of last year.

The plant recorded the best production performance for any November since its inception in sinter, hot metal, billets, bars, wire rods, finished steel and saleable steel. Hot metal, saleable and liquid steel production crossed their rated capacity during the calendar year.

The spokesman said the company also had the gratification of accounting for high levels of techno-economic parameters in the domestic steel sector. During April-November, the plant registered average specific energy consumption of 6.20 G. Cal/tonnes of liquid steel, gross water consumption of 4.11 cum/tonnes of steel and gross power consumption of 477 kwh/tonne of liquid steel, all of which, he pointed out, are the best indices available in the steel industry.

The cumulative labour productivity reached 248 tonne/man year during this period, he added.

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VSP profits on upswing in current fiscal