ENP Newswire -
Release date- 14082014 -
Operating performance improved across all geographies as Group EBITDA for the first quarter ended
The Indian operations continued to perform strongly and improved over the previous year on all parameters.
Hot metal and crude steel production reached 2.53 million tonnes and 2.33 million tonnes respectively in Q1 FY'15 while saleable steel production increased to 2.25 million tonnes.
Deliveries in Q1 FY'15 increased to 2.1 million tonnes versus 2 million tonnes in Q1 FY'14. We continued to increase our deliveries to our target segments in the domestic markets, with exports constituting barely 1% of total sales in Q1 FY'15. Sales of Automotive and Special Products increased by 16% over the last year and the share of value added and high-end products increased further.
We made further inroads in the Branded Products, Retail and Solutions segment with sales in Q1 FY'15 increasing by 12% over Q1 FY'14. Sales to Industrial Products, Projects and Exports remained steady with increases in the share of value added products.
Turnover in Q1 FY'15 increased by 11% to '
Q1 FY'15 EBITDA was '
Profit after tax in Q1 FY'15 was '
Despite a reduction in the market spread compared with the year-earlier quarter, profitability improved. Production and deliveries were similar to the year-before level. European steelmakers have been contending this year with rising imports, which are limiting their ability to take advantage of growing European demand.
The European operations pursued their objective of supporting customer success in their own markets through product and service improvement. Ten new products have been launched so far this year, such as a new automotive steel grade which combines strength and formability, making it ideal for the crash-protection structure of vehicles. These efforts have resulted in the proportion of differentiated products in the operations' sales rising by around a fifth compared to last year.
The Company started processing centres in
The focus on costs was also maintained, leading to year-on-year savings of
Liquid steel production in Q1 FY'15 was virtually unchanged at 3.7 million tonnes from the level in Q1 FY'14. Deliveries increased by 2% to 3.2 million in Q1 FY'15 from 3.14 million tonnes in Q1 FY'14.
Turnover in Q1 FY'15 was '
EBITDA increased by 28% to '
Q1 FY'15 EBIT improved to '
Deliveries increased at NatSteel while the operations in
Q1 FY'15 deliveries were 1.08 million tonnes, 26% higher than the 0.86 million tonnes in Q1 FY'14. This volume growth was achieved by the NatSteel operations as deliveries from the Thai operations were similar to the previous year.
Turnover in Q1 FY'15 was '
EBITDA for Q1 FY'15 was '
The Group continues to undertake several financial initiatives to strengthen the balance sheet. Noncore assets such as
During the quarter under review, the mining operations in Odisha were suspended for a fortnight following the interim order by the
Pending renewal of the mining leases, the State Government issued Express Orders that enabled the Company to resume its mining operations within the quarter in two iron ore mines and two manganese mines in Odisha. The Company was able to implement various mitigation plans such that there was minimal impact on the deliveries of saleable steel.
The Express Orders for the Khondbond Iron Ore Mines and Sukinda Chromite Mines are still pending with the State Government. Consequently, the mining operations and expansion of the mining capacity have been suspended and this has led to the stoppage of the operations of
The Company continues to engage with the State Governments and the
Mr T V Narendran, Managing Director of
Government's thrust on development of core industries like housing and infrastructure should boost steel demand in the coming quarters. We continue to grow our delivery volumes with enrichment of the overall product mix. During the quarter we have started commercial operations of our continuous annealing line and a new galvanising line.
In addition, the Coke Oven Battery#11 has been commissioned and the facility was ramped up in record time. Our KPO Phase 1 project is progressing as per schedule and will be operational by the end of this fiscal. In
This would not have happened without the work we are doing to reduce costs and improve our products and services. We maintained the good pace set last year in our portfolio enhancement programme. We have launched ten new products and increased the proportion of differentiated sales by almost 20%. Our operational performance matched that of a year ago, when we restored output to more normal levels. But
While we fully support free trade, all trade must be fair and international rules fully respected and enforced. Our focus on operational reliability and costs will continue as we pursue further progress towards sustainable financial performance.'
Despite significant capex spend during the quarter, mainly for the greenfield project in Odisha, we were able to reduce the net debt. The Company continued to pursue its strategy of monetising its non-core assets as demonstrated by the sale of its stake in
Statements in this press release describing the Groups' performance may be 'forward looking statements' within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Group's operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Group operates, changes in Government regulations, tax laws and other statutes and incidental factors.
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