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Essar Steel Announces Q1 Operating Profit

Steel News - Published on Fri, 19 Jul 2019

Image Source: Hindu Business Line
Economic Times reported that while its bankruptcy resolution continues to negotiate fresh twists every passing month, Essar Steel has posted its best quarterly performance in the June quarter, bucking a muted business cycle in the global infrastructure industry. Crude steel production witnessed growth of 9.5% at 1.88 million tonnes and the company posted operating profit of INR 1,120 crore in the quarter ending June. This is more than twice Essar Steel had earned when administrators took over the company about two years ago. Net sales increased in the quarter by 3% at INR 8,100 crore.

A banker aware of the resolution process said that "The improvement has come due to cost efficiency and better inventory management, aided by better product mix.”

He also said that the company is meeting working capital requirements through internal cash and is not borrowing anymore from banks.

Source :

Posted By : Sanju Moirangthem on Fri, 19 Jul 2019
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