Essar Steel Algoma posts Rs 1,047 crore operating profit in FY15

NEW DELHI: Essar Steel Algoma today reported an operating profit of Rs 1,047.42 crore (194.9 million Canadian dollar) for the year ended March 31, 2015, helped by shipment volumes and higher prices.

The firm, part of the Ruias-controlled Essar Steel, had posted EBITDA (earnings before interest, taxes, depreciation, and amortisation) loss of Rs 319.53 crore (55.2 million Canadian dollar) in the year-ago period, it said in a statement.

The firm's revenue for the year rose 12 per cent to Rs 10,663.42 crore (1.98 billion Canadian dollar), it added.

It follows April-March as fiscal year.

"Results reflect the impact of shipment volumes of 2.39 million tonnes (MT) for the year and higher selling prices. Shipments for the quarter ended March 31, 2015 were up 10.7 per cent at 5.70 lakh tonnes compared to the same three-month period ended March 31, 2014," the firm said.

During the fiscal, Essar Steel Algoma completed the comprehensive recapitalisation and refinancing valued at $1.4 billion, it added.

"Operationally, the business achieved a reduction in conversion costs of 12 Canadian dollar per tonne year on year while maintaining shipment volumes despite an onslaught of imports and recovering demand," it said.

"Through the recently announced Modernisation and Expansion Programme, we expect to offer a much broader range of advanced steel grades over the next 36 months as we introduce the best available technology," Essar Steel Algoma CEO Kalyan Ghosh said.