Essar’s Flat Steel Production Up by 48% in Q1 FY17

India’s one of the largest steel manufacturer, Essar Steel India Limited (ESIL) has recorded a growth of 48% in its flat steel production in Q1 FY17 against Q1 FY16. The same is recorded at 1.22 MnT in Q1 FY17 which at 0.824 MnT in Q1 FY16.

However, if we compare the same with previous quarter i.e. Q4 FY16, the company’s flat steel output has fallen by 0.8% in current quarter.

The company’s liquid steel output which is recorded at 1.23 MnT in Q1 of current fiscal has also increased by 52% against Q1 of FY16.

ESIL’s highest growth of 55% is recorded in PPGI (Pre Painted Galvanized Iron) production with 78 KT production in Q1 FY17 against 50 KT production in corresponding period of previous fiscal.

Along with ramp-up in production since March 2016, company’s debt-equity ratio have improved. Its earnings have also increased from 5% to 20% which is equal to improvement of INR 6,000-7,000 per tonne

The introduction of trade barriers such as MIP (Minimum Import Price) and BIS standards by the Indian government has brought in positive impact on the production numbers and financials of ESIL. The domestic sales reliastaions of the company has improved with the restriction on cheaper steel imports in to India.

Essar Steel’s Quarterly Production

Source: Essar Steel