MUMBAI, November 6: Essar Steel of the Ruias has recorded a turnover of Rs 1,063.15 crore in the first six months of the fiscal 1998 as compared to Rs 937.06 crore in the corresponding period of last year, marking an increase of 13 per cent.

The net profit of the company was Rs 16.53 crore in the first six months as against a loss of Rs 48 crore.

Despite a recession in the steel industry, the company's operating profit margin improved by 5 per cent and stands at 33 per cent of sales, the highest in the domestic steel industry, the company claimed. Cash profit in the first half increased by 108 per cent to Rs 182.04 crore, as against Rs 87.58 crore during the same period last year.

Essar Steel's managing director Jatinder Mehra said here today that Essar Steel's net sales realisation were higher by 4 per cent due to massive cost cutting exercise undertaken by the company.

After languishing from the last few months, the company's scrip went up to Rs 22.50 on the BSE as compared to its previous close of Rs 21.75.

Mehra said that the company sold over 6.49 lakh tonne of hot rolled coils as against 5.73 lakh tonnes in the corresponding period of last year. The capacity utilisation would have been higher but for the production loss due to a fire at the caster unit and the transporters strike. ``Due to our aggressive inventory management, the inventories have come down by over 20,000 tonne to about 54,000 tonnes.

The company exported over 1.23 lakh tonnes which is 18 per cent of its total turnover. About the future outlook, he said the revival of the industry depends on the revival of the economy and the outcome of Indian government's anti-dumping charges on some CIS countries.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.