Essar Steel Records Highest Flat Steel Production In March
7 April 2016
Debt-laden Essar Steel has recorded highest ever monthly production of flat steel in March and has achieved a capacity utilisation rate of 70 percent.
"At 5 lakh tonnes, it was up by 62 percent when compared to 3.08 lakh tonnes produced in the same month last year. This translates into a capacity utilisation of 70 percent. This is our highest ever monthly flat steel production," it said in a statement.
During the quarter ended March 31, 2016, Essar Steel improved its performance substantially across all its units, it added.
Its pellet production grew by 48 percent to 1.93 million tonnes (MT) in January-March of 2015-16 against 1.30 MT in 2014-15, while liquid steel output was up 43 percent to 1.24 MT against 0.87 MT during the same period, the firm said.
Last month, the Ruias-promoted firm said its promoters have assured the Joint Lenders Forum (JLF) that they will infuse additional funds in the firm to support its operations and "improve capital structure".
The embattled firm, in a meeting with its bankers assured them that it is still searching for a strategic investor and the process is in early stages and may take 6-12 months.
The firm, part of oil-to-steel Essar Group, has a net debt of Rs 38,000 crore, of which Rs 30,000 crore is long-term loan and the remaining is working capital.
Source : moneycontrol.com