VISAKHAPATNAM: The Rashtriya Ispat Nigam Limited (RINL) has declared a total dividend of Rs 92.65 crore consisting of 10 per cent Profit After Tax (PAT) for 2013-14 to equity shareholders (amounting to Rs 36.65 crore) and coupon rate of 7 per cent on preference share capital to preference share holders, as on September 29, 2014 (amounting to Rs 56 crore).
This also includes the interim dividend of Rs 58 crore declared earlier during the year and already paid to both equity shareholders (Rs 3 crore) and preference shareholders (Rs 55 crore). The total dividend cash outflow including dividend tax for 2013-14 amounts to Rs 108.40 crore.
The dividends were declared at the 32nd Annual General Meeting (AGM) of RINL held here Tuesday. Presiding over the meeting, RINL chairman-cum-managing director P Madhusudan said that the much-awaited expansion was nearing completion and is likely to yield results by end of the present fiscal. The RINL was likely to move ahead in achieving the capacity of 7.3 Mt liquid steel, he added.
The company registered a PAT of Rs 366 crore for 2013-14 as against the previous year’s Rs 353 crore. The lower revenue operations of Rs 13,431 crore was due to sluggish market conditions, increase in input costs, especially basic raw materials, and depreciation in rupee against dollar, all of which have had an adverse impact compared to last year, Madhusudan said.
The present achievement in the current economic conditions was a tough task, indeed, and the initiatives taken up by the company facilitated in achieving the level, he explained. The CMD also revealed the initiatives taken like signing of MoU with NMDC for laying of slurry pipeline from Nagarnar to Visakhapatnam, setting up of pellet plant with MECON for developing and manufacturing silicon steel, and with Indian Railways for setting up of forged wheel plant at Rai Bareli, UP, among others.
“India is increasingly becoming an important part of the international steel market and a key growth area for steel production, based on factors including its strong demand for steel arising from strong economic growth, low per capita steel consumption and abundant iron ore reserves. Increase in demand for steel in India has led to a corresponding increase in steel production in India, which comprises the simultaneous commissioning of the brown field expansion of a number of domestic steel companies, including RINL,” Madhusudan said. The RINL continues to focus on Research and Development, which would help the company in the long run as a quality steel producer for every segment of long products, he added.
On behalf of President of India, director (Ministry of Steel) Pushpendra Rajput, RINL directors TK Chand (Commercial), PC Mohapatra (Projects), GBS Prasad (Personnel), DN Rao (Operations) and TVS Krishna Kumar (Finance) were also present. RINL secretary P Mohan Rao coordinated the proceedings of the AGM.
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