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The company is in the process of acquiring two railway rakes under the General-Purpose Wagon lnvestment Scheme (GPWIS) of Railway Board. lndian Railways offer 10% rebate on railway freight rate for 15 years under the GPWI Scheme. As such, altogether company would be able to save 25% on the freight cost (10% rebate plus 15% on premium indent).
The company has decided about owning railway rakes to boost up loading of lron ore and coal (primary raw materials of the company) from origin (port, mining area etc.) to its manufacturing facilities. Owning two railway rakes would cost the company around Rs 55 crore but having own rakes would assure that raw materials are dispatched timely, hassle free and cost effectively.
First rake is expected to be delivered in the last week of July 2023 and second one in the month of November 2023. lt everything goes as per the expectation of the management, company would explore of owning more railway rakes in future to cater the need of raw materials of the company with faster movement.
Gallantt Ispat is engaged in the business of manufacturing of Steel and Power.
The company's standalone net profit declined 23.6% to Rs 67.92 crore despite 24.7% jump in net sales to Rs 1,075.99 crore in Q4 FY23 over Q4 FY22.
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