PT Essar Indonesia post 22% EBITDA growth in FY '15

One of the largest downstream steel facilities, PT Essar Indonesia, part of Essar Global Fund has registered 22 per cent growth in its EBIDTA at $15.37 million for the year ended March 31, 2015, against an EBIDTA of $12.57 million in the previous year. However, the company's revenue was marginally lower at $252 million as compared to last year, due to depreciation in IDR, the company stated in an official communique.

Currently, PT Essar Indonesia sells all its products in the domestic market, since exports are still not feasible due to lower international prices are lower (despite IDR depreciation) compared to the domestic market.

Steel production for the year ended March 31, 2015 was higher by two per cent at 317,000 tonnes, as against 312,000 tonnes in the previous year. "The change in product mix towards high value grades has resulted in higher EBIDTA, though production volume is only marginally higher. The capacity utilization with the changed product mix was about 90 per cent," the company further stated.

"Our focus on value added products has enabled us to post a better performance. The performance, when viewed in the context of 18 per cent depreciation of the Indonesian currency vis-a-vis the USD and continued weakness in steel demand, reflects the strength of the company," said Dattatreya Tembhekar, CEO, PT Essar Indonesia.