Essar Steel has posted a 178% rise in net profit at Rs 278.8 crore for Q4 ended March 31, 2005 as compared to Rs 98 crore last year. Total income, net of excise, grew by 57% to Rs 1,926.6 crore from Rs 1,227.1 crore. For the year ended March 31, 2005, it posted a 883% rise in net profit at Rs 590.2 crore as compared to Rs 60 crore last year. Total income (net of excise) grew by 65% to Rs 6,121.3 crore from Rs 3,717.7 crore last year.

During Q4, operating margins improved to 36% from 23% in the corresponding quarter last year. Chairman Shashi Ruia said, "value added products accounted for over 35% of sales volumes as against 20% last year, having a positive impact on profitability. Demand continues to be bullish and we are putting in place a number of measures to remain one of the lowest cost producers of steel." The Essar Steel stock opened at Rs 60.90 on BSE. Touching an intra-day high of Rs 62.35 it closed at Rs 58.80 per share.