Electrosteel Steels Ltd (ESL) has informed the stock markets that during 2015-16 financial year it recorded a 78 per cent growth in sales of steel products (in terms of weight).

The unaudited annual accounts of the company, according to sources, suggested that the gross turnover for 2015-16 stood at ₹2,800 crore.

The company had reported a gross audited turnover of ₹2,033 crore in 2014-15.

Based on this improvement, the company’s nine-member board of directors has approved an annual business plan for the financial year 2016-17.

The plan expected to achieve a gross turnover of around ₹4,500 crore in 2016-17.

The company said, “in terms of goods sold in tonnes” this would mean an annual estimated growth over 25 per cent.

The company at present is producing pig iron, billets, TMT bars, wire rod and ductile iron pipes at its integrated steel plant and other units at cent per cent capacity utilisation at Bokaro in Jharkhand.

According to sources, ESL with a debt burden ₹10,500 crore and the monthly finance cost of ₹90 crore, made a net loss, but turned EBIDTA positive in 2015-16.

According to market analysts, the company’s filing sought to suggest that ESL was on its way to a turnaround.

The board also approved, subject to lenders and shareholders, allotment of shares to Shandong Province Metallurgical Engineering Co Ltd of China against ₹159 crore arrear payable for supply of a number of project equipment.

Meanwhile, the lenders led by SBI, would meet again towards the end of this month to decide on the selection of a proposed strategic investor.

Sources said that the lenders could not take a final call on April 11 on the due-diligence report on First International Group of the UK, the intending investor in ESL.

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