Metal Stock Announces New Project Deal On Aiming To Reduce Carbon Foot Print

With a market valuation of Rs 520 Cr, Rathi Steel and Power is a small-cap business in the capital goods industry. Rebars and wire rods are produced by Rathi Steel & Power Ltd. for the steel industry. The cost optimisation project has been launched by the corporation on Monday.

"Almost all major equipment(s) related to the project have already been received at the site / expected to be received soon," said Rathi Steel and Power in a regulatory filing.

The project entails synchronising the rolling and casting of steel. The aforementioned effort is anticipated to produce net fuel and yield savings when it is put into action and stabilises. It will lessen the carbon footprint, which will improve sustainability as well.

"The company is targeting to commence Trial Runs of the said project in the month of May 2024. The subsequent stabilisation period may take further time. There may also be some impact on production and sales volumes during the said period due to the above project activities," said Rathi Steel and Power in a stock exchange filing.

At its meeting on April 20, 2024, the Board of Directors authorised the use of Kotak Mahindra Bank's whole credit limit of Rs. 43.50 crores in accordance with the Sanction Letter. With this, the company and Kotak Mahindra Bank have signed a loan agreement recently.

\On Tuesday, the shares of Rathi Steel and Power were trading at Rs 61.13 apiece level. The stock reached a 52-week-high of Rs 67.10 on (04/04/2024) and a 52-week-low of Rs 3.15 on (03/07/2023).