Essar Steel said its net profit in Indonesian subsidiary has jumped multi-fold in the financial year ended March 2015 to $3.79 million against $0.16 million logged in the same period last year.
The company registered 22 per cent growth in its EBIDTA at $15.37 million against $12.57 million in the previous year. Production was up two per cent at 3.17 lakh tonnes (3.12 lakh tonnes). The change in product mix towards high value grades has resulted in higher earnings, though production volume is only marginally higher, said Dattatreya Tembhekar, CEO, PT Essar Indonesia.
“Our focus on value added products has enabled us to post a better performance. The performance, when viewed in the context of 18 per cent depreciation of the Indonesian currency against US Dollar and continued weakness in steel demand, reflects the strength of the company,” he said.
The capacity utilisation with the changed product mix was about 90 per cent.
PT Essar Indonesia has 0.4 million tonnes per annum steel downstream facility that manufactures cold rolled, galvanized and annealed steel in sheets and coils.