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ArcelorMittal Nippon Steel India has reported that its Ebitda nearly doubled to $403 million in the quarter ended March.
Announcing the earnings for the first quarter of this year, ArcelorMittal said the India operations achieved an annualised production of 7.3 million tonnes and achieved $403 million Ebitda with a run rate of $1.6 billion in FY21 due to a greater focus on export markets.
ArcelorMittal has a 60 per cent stake in the India joint venture with Japanese giant Nippon Steel.
The business (AMNS India) is already exceeding the level of EBITDA required to cover the cash needs of the business of about $300 million annually, said the company.
The near term growth plans include de-bottlenecking existing operations to achieve 8.6 million tonne capacity while in the medium-term the company plans to enhance capacity at Hazira complex to 14 mt. These growth plans would be funded by the joint venture using the cash generated from the business and $1 billion cash in balance sheet.
AMNS India has also signed a memorandum of understanding with the Odisha government for exploring a greenfield integrated steel plant of 12 mt in the Kendrapara.
Aditya Mittal, Chief Executive Officer, ArcelorMittal, said while the first quarter of this year has been the strongest in a decade the company is mindful that Covid continues to be a health challenge across the world especially in developing economies.
Nowhere this is more obvious at present than in India, where the company is providing oxygen daily from the sites to local hospitals and setting up temporary medical facilities, he said.
“Our thoughts are with the people of India as they strive to bring this situation under control,” he added.
Globally, ArcelorMittal reported 92 per cent increase in net income at $2.3 billion ($1.2 billion) in Q1 of 2021. EBITDA of $3.2 billion ($1.7 billion) in Q1 of 2021. Steel shipments were 6.5 per cent higher sequentially.
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