Order Specifications and Timeline
The company secured a significant purchase order from Rashtriya Ispat Nigam Limited for the supply of metallurgical coke. Originally structured for a smaller volume, an amendment to the purchase order increased the quantity from 8,000 MT to 10,000 MT. The total material value is now fixed at ₹35,11,04,800.
Delivery schedules are distributed across ten phases, with the final batch expected for delivery by late May 2026. This mandate includes updated security deposit and performance guarantee requirements, which have been scaled up to ₹1.84 crore to reflect the increased contract size and volume commitment.
Client Profile: Rashtriya Ispat Nigam Limited
- Rashtriya Ispat Nigam Limited, known as Vizag Steel, is a Navratna central public sector undertaking
- It operates the Visakhapatnam Steel Plant, India’s first shore-based integrated steel facility
- The entity is a primary consumer of metallurgical coke for its large-scale blast furnace operations
- RINL's procurement from NCML validates the company's capability to meet stringent PSU quality standards
NCML Business Overview
Nilachal Carbo Metalicks Ltd, headquartered in Bhubaneswar, specializes in the manufacturing of low-phosphorus, low-ash metallurgical coke and coke fines. The company's production facility is located in Jajpur, Odisha, a critical hub for the regional iron and steel industry. NCML serves the metallurgical sector by providing essential fuel components required for smelting and downstream processing.
The firm maintains a strong promoter holding of 73.52 percent, reflecting internal stability as it scales its operations within the intermediate steel products segment.
Industry Context and Financial Impact
NCML operates in the Iron and Steel Intermediate Products industry, which is supported by steady industrial demand despite fluctuating raw material costs. With a market capitalization of ₹222.1 crore, the company is a focused player in the Metals and Mining sector. This ₹35.11 crore order represents a substantial portion of its annual operating revenue of ₹201.51 crore, providing clear revenue visibility for the current fiscal period.
While the industry TTM PE stands at 32.67, NCML currently trades at a PE of 15.85, reflecting a different valuation tier compared to larger sector peers.
