Bhushan Steel – one of the major Indian steel makers has raised its iron ore & pellet sourcing by 9% Y-o-Y from 4.93 MnT in FY16 to 5.37 MnT in FY17. Its iron ore sourcing moved up by 2% Y-o-Y and its pellet sourcing doubled in FY17.
Bhushan Steel’s iron ore sourcing up marginally in FY17 – The company procured 4.69 MnT iron ore in FY17 from Odisha based merchant miners against 4.59 MnT in previous fiscal. Company’s major source for iron ore procurement in FY17 was Indrani Patnaik – 1.97 MnT (doubled its iron ore sourcing compared to FY16).
Other major mines from where it sourced iron ore were – Rungta Mines, Serajuddin Mines and OMC. Iron ore sourcing from Rungta Mines fell by 67% Y-o-Y while that from Serajuddin Mines and OMC moved up by 23% and 114% on yearly premises in FY17.
Company doubled its pellet sourcing in FY17 – Bhushan Steel procured 0.67 MnT pellets from merchant market compared to 0.33 MnT in FY16. 93% of the pellets sourced in FY17 were from Jindal Steel & Power. Remaining quantity was procured from Brahmani River Pellets and Arya Iron & Steel.
Bhushan Steel’s Iron Ore & Pellet Sourcing: FY17 Vs FY16
|
Iron Ore Sourcing |
||
| Mines Name | FY17 |
FY16 |
| Indrani Patnaik | 1,970,063 | 1,015,938 |
| Rungta Mines | 883,826 | 2,699,071 |
| Serajuddin | 529,406 | 429,198 |
| OMC | 446,295 | 214,977 |
| SN Mohanty | 202,261 | 56,160 |
| KJS Ahluwalia | 191,969 | 15,173 |
| Essel Mining | 179,159 | 101,995 |
| Mid East Integrated Steel | 119,505 | – |
| Others | 173,740 | 64,904 |
| Total | 4,696,223 | 4,597,415 |
|
Pellet Sourcing |
||
|
JSPL, BRPL, Arya Iron & Steel |
669,900 | 331,100 |
| Grand Total | 5,366,123 |
4,928,515 |
Qty in MT
Provisional data
Source: Odisha govt, Indian Railways, SteelMint Research
A glance at Bhushan Steel’s Financial Performance in FY17: Company’s net loss widened to INR 734.04 crores in Q3 FY17 compared to INR 693.6 crores in Q3 FY16. Bhushan Steel reported a net loss of INR 734.04 crores in Q3 FY17 against INR 980.22 crore in Q2 FY17.
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