AMNS India's operational profit falls to $341 mn in March quarter

Steel player AMNS India on Thursday said it has posted a 27.44 per cent fall in its operational profit at $341 million (about Rs 2,788 crore) during the March 2023 quarter.

The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at $470 million in the January-March period of 2022, parent firm ArcelorMittal said in a statement.

AMNS India follows January-December financial year.

"EBITDA during 1Q 2023 of $341 million was higher as compared to $162 million in 4Q 2022, due to higher steel shipments, higher average steel selling prices and lower costs (including energy costs). However, it was lower as compared to $470 million in 1Q 2022, due to lower prices offset in part by higher steel shipments," it said.

ArcelorMittal in joint venture with Nippon Steel of Japan owns and operates about 9 million tonne steel plant in Gujarat.

In 2019, ArcelorMittal along with Nippon Steel completed the acquisition of the Essar Steel Ltd plant located at Hazira in Gujarat, and later renamed it to ArcelorMittal Nippon Steel (AMNS) India.

AMNS India's crude steel production in 1Q or the first quarter of 2023 increased by 2 per cent to 1.8 MT over the production in the same period of 2022.

The steel shipments in January-March 2023 increased to 1.8 MT from to 1.7 MT in the March quarter of 2022.

According to ArcelorMittal, AMNS India has an approved investment plan of $7.4 billion to expand capacity, increase value added capabilities and leverage infrastructure.

Out of which, $1 billion is being invested in downstream facilities at Hazira to supply growing automotive demand. Another USD 2.4 billion was utilised to acquire port, power and other logistics and infrastructure assets from Essar Group (India).

"1Q 2023 capex of $0.9 billion is consistent with full year guidance. The decarbonization project capex spend is estimated at $0.4 billion," it said.