IBEF: July 19, 2019
Essar Steel has published its finest quarterly performance in the June quarter, beating a muted business cycle in the global infrastructure industry. Crude steel production observed a growth of 9.5per cent at 1.88 million tonnes and the company announced their operating profit of Rs 1,120 crore (US$ 155.68 million) in the first quarter of financial year 2019-2020. This earning is more than twice Essar Steel had earned when administrators took over the debt-laden alloy maker about two years ago. Net sales increased in the quarter by 3 per cent at Rs 8,100 crore (US$ 1125.9 million)
Operating profit is also seen 2.5% per cent higher than the same period last year and more than double of the March quarter, when low steel prices had hit realisations for the entire steel industry. The progress has come due to cost effectiveness and better supply management, aided by better product mix. The company is meeting working capital requirements through internal cash and is not borrowing anymore from banks, as per the source.
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