AMNS India’s output down 29%, EBITDA by 23.5% in April-June quarter

Friday, 31 July 2020 10:22:12 (GMT+3)   |   Kolkata
       

ArcelorMittal Nippon Steel India (AMNS India) reported a 23.5 percent decline quarter-on-quarter in earnings before interest, tax, depreciation and amortization (EBITDA) at $107.7 million in the quarter ended June 2020, according to a statement issued by the company.

ArcelorMittal which holds 60 percent equity stake in AMNS India said that Covid-19 had severely disrupted domestic demand particularly during April. AMNS India’s crude steel production during April-June 2020 quarter was down 29 percent to 1.2 million mt compared to 1.7 million mt during January-March.

However, the company said that month-on-month demand and output were improving after  easing of lockdown restrictions in May. In June, the company’s annualized production run rate was back to 7 million mt and during the weak domestic demand the steel producer took advantage of its coastal location to increase iron ore pellet exports from its palletization plant in Odisha in the east.

“As lockdown measures lift the assets are currently running at higher utilization levels then the low levels during the peak impacts during 2Q 2020... ESIL [Essar Steel India Limited] has acquired the Odisha Slurry Pipeline Infrastructure for net $245 million (Rs 1,860-crore); this secures an important infrastructure asset for raw material supply to Hazira steel plant,” the company said in the statement.


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