Essar Steel Six Month Revenue Up By 34% At Rs. 1682 Cr.
October 30, 2003
Financial Performance
Essar Steel has registered a growth of 34% in total income at Rs. 1681.88 cr. for the six month ended September 30, 2003 as against Rs. 1253.26 cr. in the corresponding period of the previous year. The operating profit has improved by over 274% at Rs. 367.30 cr. for the same period as against Rs. 98.30 cr. in the corresponding period of the previous year. The finance cost has come down by 25% at Rs. 189.02 cr. as against Rs. 250.49 cr. in same period last year. Thus improving cash profit to Rs. 178.28 cr. against a cash loss of Rs. 152.19 cr. in the same period of last year. After providing for depreciation at Rs. 204.50 cr., the company has reduced its loss to Rs. 16.29 cr. as against Rs. 564.18 cr. in corresponding period of the previous year.
Physical Performance
The production of hot rolled coils has registered a growth of 13% at 9.11 lakh tonnes compared to 8.05 lakh tonnes in the comparative period of last year. Total sales at 8.9 lakh tonnes is higher by 15% compared to 7.74 lakh tonnes in the same period last year. However, domestic sales were lower by 8% at 4.35 lakh tonnes (4.71 lakh tonnes in the same period of the previous year) and exports sales were up by 50% at 4.55 lakh tonnes ( 3.03 lakh tonnes in the same period of the previous year).
Market Outlook
The prices in the domestic and export market continue to remain firm in the next couple of quarters. Some of the European and US mills have already indicated upward price revision for the next quarter beginning January, 2004. China continues to drive demand for steel internationally. Domestically, there has been a consumption growth of over 5-7%.
Key Highlights of Performance
Total income up by 34% at Rs. 1681.88 cr.
EBIDTA is up by 274% at Rs. 367.30 cr.
EBIDTA margin is 22%
Cash Profit is Rs. 178.28 cr.
Finance cost is lower by 25% at Rs. 189.02 cr. compared to Rs.250.49 cr.
HRC production is up by 13% at 9.11 lakh tonnes as against 8.05 lakh tonnes
Total HRC sales up by 15% at 8.9 lakh tonnes as against 7.74 lakh tonnes
CORPORATE
