Essar Steel Algoma, the Canadian subsidiary of the Ruias-promoted steel maker, has reported C$38.1-million (Rs 207 crore) net profit for the year ended March 31, 2012 on higher volumes and prices.

“The improvement (in net income) over fiscal year 2011 is primarily attributable to increased volumes, higher selling prices, a favourable product mix, and lower costs,” the company said in a statement today.

In 2010-11, Essar Steel Algoma had reported C$285.9-million loss due to higher raw material costs.

“Our strengthening product mix and enhanced operating reliability enabled us to perform favourably within the improved market environment this year,” Essar Steel Algoma Chief Executive Officer, Mr Jim Hrusovsky, said in the statement.

Total sales during 2011-12 were C$2,159.8 million against C$1,768.3 million in the previous fiscal.

The company sold 2.6 million tonnes of steel in 2011-12, up 8.9 per cent over the previous year.

It, however, reported C$18-million loss in the fourth quarter of 2011-12.

Essar Steel Algoma is a fully integrated steel producer based in Ontario and has a production capacity of four million tonnes per annum.

(This article was published on June 12, 2012)
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