Essar Steel Improves performance; Posts Net Profit At Rs. 59.99 Cr.
May 18, 2004
Financial Performance
Essar Steel (EStL) has improved its performance in the last financial year. EStL has ended the fiscal with a highest ever production, sales and the profit. It recorded an increase in its net profit to Rs. 59.99 crore for the year ended March 31, 2004. The EBITDA registered a growth of 71% at Rs. 859.21 crore compared to Rs. 502.74 crore.
Total income for the year was Rs. 4024.60 crore as against Rs. 3013.07 crore for the corresponding previous year, representing an increase of 33.57%. Interest and Depreciation were Rs. 397.68 crore and Rs. 403.27 crore respectively, for the year ended March 31, 2004, as against Rs. 393.62 crore and Rs. 367.93 crore during the previous year.
Commenting on the performance, Shri Prashant Ruia, Managing Director said, "Our persistent efforts in the last two years to reduce debt, reduce cost of production, increase volume and improve the product-mix coupled with the buoyancy in the steel market has enabled us to post the improved performance. However, many of our efforts in these areas are yet to fully fructify most of which are expected to reflect in the current fiscal".
Physical performance
The sales grew in volumes terms by 12% at 1.92 million tonnes for the year ended March 31, 2004 compared to 1.72 million tonnes in the previous year. The production of HR Coil increased by 10% at 1.93 million tonnes (1.75 million tonnes in the previous year) representing a capacity utilisation of 80.5% of the rated capacity. The production of HBI, a rawmaterial for steel-making, grew by 13% at 2.23 million tonnes (1.98 million tonnes in the previous year) representing a capacity utilisation of 93%.
EStL made major breakthrough in value added grades meeting exacting standards of auto majors and auto ancillaries, white and brown goods manufacturers resulting in regular orders from OEM segment. In the export market, value-added grades constituted 40% of total exports volume.
Performance highlights for 2003-04
Sales grew by 33.5% at Rs. 4024.60 cr.
Total sales grew by 12% at 1.93 million tonnes from 1.72 million tonnes.
Total production of HRC grew by 10.5% at 1.93 million tonnes from 1.75 million tonnes.
HBI production grew by 13% at 2.23 million tonnes from 1.98 million tonnes.
EBIDTA grew by 70.91% at Rs. 859.21 cr. from 502.74 cr.
EBIDTA margin improved from 16.68% to 21.35%
Cash profit increased by 323% at Rs. 461.53 cr. from Rs. 109.12 cr.
CORPORATE
ended March 31, 2004, as against Rs. 393.62 crore and Rs. 367.93 crore during the previous year.