Vedanta ESL Steel Registers Massive Growth Since 2018
The Pioneer reported that with its rapid expansion and use of advanced technology, Vedanta Group ESL Steel Limited has reshaped the landscape. ESL came into existence on 31 March 2018 and during the financial year 2018-19, ESL’s steel production jumped to 1.2 million tonnes, which was a 17% increase on a year-on-year basis, while the EBITDA stood at INR 791 crore. The steel major improved operational efficiencies, reducing coke rate at blast furnaces 2 and 3 by around 3% and 7% year-on-year, optimising coal mix and iron ore blending, and improving finishing mill yields from 95.9% in 2018 to 96.7 in 2019. During FY 19, hot metal production reached 1.5 million tonne
The second year of ESL saw redesigned operations and record output. The company’s EBITDA margin increased from USD 53 per tonne in FY2018 to USD 112 per tonne in the fourth quarter of FY19.
Even during the pandemic period in FY20, ESL’s annual steel production stood at 1.23 million tonnes, up by a 4% YoY and witnessed a robust margin of USD 127 per tonne. It also brought down the production cost by 9%, from USD 457 per tonne to USD 418 per ton in FY 2020.
Despite frequent COVID-19 lockdown(s), the annual steel production in the current fiscal climbed to 1.19 million tonnes, while the EBITDA stood at USD 131 per tonne. Additionally, ESL achieved its lowest ever cost during the acquisition, resulting in a higher EBITDA margin vis-à-vis the previous period