Neelachal Ispat on turnaround trail, makes operating profit in April-August

MMTC-controlled Neelachal Ispat Nigam Ltd (NINL) has shown signs of recovery in this fiscal by delivering a positive Ebitda (earnings before interest, taxes, depreciation & amortisation) or operating income.

At the company's 36th annual general meeting in Bhubaneswar, S S Mohanty, the company's vice chairman & managing director said, NINL generated an Ebitda of Rs 4,000 per tonne of pig iron during the April-August period. In the comparable period of last fiscal, the company's performance was Ebitda-negative.

NINL's positive Ebitda in FY19 is attributed to its marked increase in production after the blast furnace resumed operations in May 2018, following a capital repair. Following the overhaul, the blast furnace's production capacity has doubled. At present, the furnace is churning out an average production of 3,000 tonnes of hot metal per day.