AMNS India EBITDA down 63% on lower output, higher cost

ArcelorMittal Nippon Steel India has reported a 63 per cent drop in EBITDA to $204 million (about ₹1,693 crore) against $551 million (about ₹4,573 crore) logged in the same period last year, largely due to lower output and higher operational cost.

The company’s production in India was down 12 per cent at 1.7 million tonnes (1.9 mt) due to partial shutdown of plant for maintenance. Sales dipped to 1.6 mt (1.9 mt).

Capacity expansion

AMNS India plans to expand capacity at Hazira to 15 mt by 2026 through enhanced capacity of automotive downstream andiron ore operations, with capex of $7.4 billion, and targets increasing EBITDA capacity.

The company is streamlining operations to achieve capacity of 8.6 mt per annum by 2024-end. Of the planned capex, $0.8 billion is for streamlining, $1 billion for downstream projects, and $5.6 billion for upstream projects. There are options to grow to 20 mt per annum, it said.

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AMNS India has agreed to acquire port, power and other logistics and infrastructure assets in India from the Essar Group for a net value of $2.4 billion. It has completed a part of the power closing transaction on October 19 ($0.4 billion) while the rest is subject to corporate and regulatory approvals.

Odisha plant

Last March, AMNS India submitted to the Odisha government a pre-feasibility study report for setting up an integrated steel plant of 12 mtpa and is currently engaging with the government for further studies and clearances. It is exploring options to build a 6 mtpa integrated steel plant, the company said.

It has ramped up production at the Ghoraburhani-Sagasahi iron ore mine in Odisha to a rated capacity of 7.2 mtpa for its long-term raw material requirement

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