Essar Steel Q1 revenue up by 48% at Rs. 784.84 Cr.;posts Rs.10.25 Cr. net profit
July 31, 2003
Financial Performance
Essar Steel has registered all round growth in performance in the first quarter of 2003-2004. Total Income registered a growth of 48% at Rs. 784.84 cr for the quarter ended June 30, 2003 as against Rs. 529.58 cr. in the corresponding quarter of the previous year. The operating profit is up by 125% at Rs. 179.78 cr. as against Rs. 80.07 cr in the corresponding quarter of last year. Finance cost (Net) at Rs. 67.87 cr is lower by 53% compared to Rs. 143.55 cr. in the corresponding quarter of the previous year. After providing for interest, the company has posted a cash profit of Rs. 111.91 cr compared to cash loss of Rs. 63.48 cr. in the corresponding quarter of the previous year. After providing for Depreciation at Rs. 101.66 cr, the company has posted a net profit of Rs. 10.25 cr compared to loss of Rs. 138.22cr. in the corresponding period of the previous year.
Physical Performance
While the production of Hot Rolled Coils is up by 22% at 4.46 lakh tonnes compared to 3.67 lakh tonnes in the corresponding period of the previous year, the total sales of HRC is up 12% at 4.04 lakh tonnes compared to 3.61 lakh tonnes uring the same period last year. In view of the buoyancy in the export market, company continued its thrust on exports which is up by 48% at 1.79 lakh tonnes compared to 1.21 lakh tonnes in the same period of last year. Consequently domestic sales are lower 6.5% at 2.25 lakh tonnes compared to 2.4 lakh tonnes in the same.
Essar Steel continued to increase its production of value added grades which are less volatile to market vagaries. 35% of its total production was in value added grades.
Market Outlook
The prices have shown improvement towards the end of the last quarter and is expected to remain firm during the current quarter. The Global Steel Market showed resurgence in demand subsequent to release of new quota in China, stronger Euro and increased domestic demand in CIS countries. Strengthening of global market for metallics and steel making rawmaterials has also contributed to firm steel prices. The current industry expectation is that the prices would remain firm through out the year.
In line with the international market, domestic market has also shown a resurgence in both domestic consumption and domestic production for exports. Buoyant auto industry and favourable monsoon has also given a fillip to the domestic demand.
Total income is up Rs.255.26 cr.by 48% at Rs. 784.84 cr.
Net profit is Rs. 10.25 cr. as against a loss of Rs.138.22 cr. in the same period last year.
EBIDTA is up Rs.99.71 cr.by 125% at Rs. 179.78 cr.
EBIDTA margin is at 23% as against 15% in the same period last year
Cash profit stands at Rs. 111.91 cr. compared to cash loss of Rs. 63.48 cr.
Interest lower by 53% at Rs. 67.87 cr.
HRC production is up by 22% 4.46 lakh tonnes - 35% is value-added grades
CORPORATE
