Essar Steel losses soar to Rs 581 cr

Essar Steel losses soar to Rs 581 cr

MUMBAI, JUNE 30: The losses of Essar Steel, the second largest steel producer in the private sector, have soared further by 17 per cent to Rs 581.24 crore for the year ended March 31, 2000 as against Rs 496.45 crore in the previous year.

On the other hand, SAIL, the largest steel company had managed to cut down losses for the year ended March 2000. SAIL reported a 9 per cent increase in its income to Rs 16,250.16 crore in 1999-2000 from Rs 14,963.18 crore in the previous year. The company recorded a net loss of Rs 1,720 crore for the whole year ended March 2000, lower than the net loss for the three quarters in 1999-2000 at Rs 2,065 crore.

Total income of Essar Steel during the year was Rs 2,470.15 crore, up from 2,363.23 crore in the previous year. Total revenue includes other income to the tune of Rs 48.31 crore, as against 102.92 crore in the previous year. Interest and finance charges have increased substantially by 32 per cent, from Rs 413.51 crore in the year 1998-99 to Rs 545.52 crore for the year ended 1999-2000.

Interest burden in the fourth quarter has more than doubled. Interest cost for the quarter ended March 2000 stood at Rs 264 crore, up from Rs 101 crore in the corresponding quarter of the previous year, showing a rise of 164 per cent.