Steel major AM/NS India has reported a 62.75 per cent slump in EBIDTA (earnings before interest, depreciation, tax and amortisation) in the fourth quarter of 2022 on account of lower shipments and a fall in the sales price.
The company, formerly Essar Steel, had recorded earnings of $162 million (around Rs 1,336.5 crore) during the October-December period, compared with $435 million (Rs 3,588 crore) in the corresponding period of 2021.
Production at 1.62 million tonnes (mt) was lower by 12.1 per cent compared with a year ago because of lower exports following the imposition of a duty from India in May. The duties were removed from the end of November 2022.
Steel shipment stood at 1.59mt, 8 per cent lower than 1.73mt recorded in the same period of 2021.
On a sequential basis, the EBIDTA showed a downward trend, falling from $204 million in the Q3 of 2022. Shipment decreased 2.5 per cent compared with the trailing quarter.
On a full-year basis, the company where ArcelorMittal holds 60 per cent of equity, recorded $1201 million (Rs 9,908 crore) EBIDTA in 2022, compared with $1996 million (Rs 16,467 crore) in 2021.
AM/NS India said it is investing $1 billion (Rs 8,250 crore) in value-added downstream units, focusing on demand from the auto sector. They will be commissioned by July 2024.
Moreover, the first phase expansion of upstream steel-making capacity to 15mt at Hazira is underway and expected to be completed by early 2026, while de-bottlenecking the capacity to 8.6mt will be ready by end of 2024.
