Mumbai, May 27 (IANS) Essar Steel India on Wednesday reported a net profit of Rs.648 crore for 2014-15 from a loss of Rs.1,597.14 crore in the corresponding period of the previous fiscal.
“Essar Steel has completed all major projects at a competitive cost. The company’s strategy to focus on value-added products, introducing new products, improved operating margins and cost saving, has aided the improved performance of the company,” Firdose Vandrevala, executive vice chairman, Essar Steel India was quoted in a statement.
“We have drawn up a clear road map to strengthen the balance sheet through infusion of funds, ramping up the production and improving profitability to ensure sustainable operations of the company,” Vandrevala said.
The company’s gross revenue in the fiscal ended March 31, 2015 increased by 19.61 percent to Rs.17,162 crore from Rs.14,348 crore in the previous financial year.
The total expenditure for 2014-15 declined by Rs.11,733 crore compared to Rs.12,480 crore in 2013-14.
The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) zoomed by 188.45 percent to Rs.5,389.5 crore as against Rs.1,868.4 crore in FY14.
The statement pointed-out that sales volume of steel products stood at 3.31 million tonnes, marginally up by 2 percent compared to 3.24 million tonnes in the previous year.
The company sold 2.76 million tonnes in the domestic market, and 0.56 million tonnes in the export market.
The statement said with an objective to ramp up production, the company is raising need-based working capital of Rs.4,000 crore.
“With dollarisation of $2.2 billion, the company has reduced its finance cost from 12 percent to 9 percent, and the maturity has been elongated,” the statement said.
“The holding company of Essar Steel has infused equity of Rs.1,300 crore and monetisation of Odisha Slurry Pipeline and Oxygen plant for at Rs.4,850 crore.”
The company added that it proposes to monetise the ‘Vizag Slurry’ pipeline and ‘Coke Oven’ for Rs.7,000 crore in the current fiscal.
“The above measures will provide the company Rs.12,000 crore which will be utilised to strengthen the balance sheet and meet all its financial needs,” the statement added.