Essar Steel Algoma has posted positive EBITDA with the successful completion of a comprehensive recapitalisation and refinancing of its debt worth $1.4 billion.

The company registered an earnings before interest, tax, depreciation and amortisation of ₹1,047 crore (Canadian $194.9 million) in the financial year ended March 31, 2015 against a loss of ₹320 crore (CAD $55.2 million) recorded in the same period last year.

Income from operations for the twelve month period under review was at ₹410 crore (CAD $76 million) against loss of ₹1,392 crore (CAD $240.4 million) for the same period ended March 31, 2014. Operationally, the business achieved a CAD $12 per tonne reduction in conversion costs while maintaining shipment volumes despite an onslaught of imports and recovering demand, the company said in a statement on Tuesday.

For quarter ended March 31, its revenue was up 11 per cent at ₹10,663 crore (CAD $1.984 billion). Shipment volumes were up 11 per cent at 570,080 tonnes.

Wider range

Through the recently announced modernisation and expansion programme, the company expects to offer a wider range of advanced steel grades over the next three years, as the best available technology has been implemented, said Kalyan Ghosh, Chief Executive Officer, Essar Steel Algoma.

“When combined with our return to profitability and low cost model, this investment will put us in a much stronger position,” he added.

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