Essar Steel Posts An Operating Profit of Rs. 404 Cr. For The Six Month Ended March 31, 2003
June 10, 2003
Essar Steel has posted an improved financial performance for the six-month ended March 31, 2003.
Essar Steel Limited (ESL) has ended October - March 2003 period with a higher turnover and operating profit. ESL has registered a growth of 84% in total Income at Rs.1771.37 crore for the six-month ended March 31, 2003 compared to Rs.963.93 crore in the corresponding period of the previous year.
During the period under review, the company posted a growth of 282% in operating profit at Rs.404.44 crore compared to Rs.106.00 crore in the corresponding period of the previous year. After providing for finance costs (net) of Rs.143.13 crore (Rs.385.18 crore in the previous corresponding period), the company recorded a healthy cash profit of Rs.261.31 crore compared to a cash loss of Rs.279.18 crore in the corresponding quarter of last year. After providing for depreciation of Rs.195.47 cr. (Rs. 212.69 cr.),and writing off Deferred Revenue Expenditure & the provisions for Doubtful advance of Rs. 64.33 cr. ( Rs. 31.67 cr. in the previous corresponding period) the Company has posted a net profit Rs. 1.51 cr as against a loss of Rs. 328.54 cr. in the corresponding period of the previous year.
These results were taken on record by the Board of Directors at their meeting held on June 10, 2003.
Operating Performance
The sales grew in volume terms by 34% at 9.47 lakh tonnes compared to 7.02 lakh tonnes in the previous year. Exports have registered a rise of 298% at 4.54 lakh tonnes as against 1.14 lakh tonnes in the corresponding period of the last year.
The increase in cost of raw materials like metallic, power and fuel costs impacted the EBIDTA margin of the company. However, the company could offset partially the negative impact through increased production and higher sales realisation.
Corporate Debt restructuring
The Corporate Debt Restructuring scheme has been approved with effective from 1 October 2002 and interest has been provided at the rate approved by CDR. Current result reflect the savings on account of FRN interest and the Balance Sheet would reflect reduction in debt thus improving the networth.
CORPORATE