Essar Steel Ltd
is planning to convert secured and unsecured loans into equities.
The company board at its meeting on 19 July 2002 will take a
decision on this regard.
Improvement in the steel
sector has helped Essar Steel, Indias largest hot-rolled steel
coil exporter, to announce a lower net loss of Rs 186 crore for
the fourth quarter ended 31 March 2002, compared to Rs 367 crore
registered in the same period last year.
For the financial year
ended 31 March 2002, the loss stood at Rs 635 crore, compared to
Rs 346 crore in the previous year. The 2.4-million-tonne company
attributed the annual performance to a drop in sales realisation
by 13 per cent.
The total income of the
company fell 9 per cent to Rs 496 crore, compared to Rs 549 crore
in the same quarter last year. While the companys performance
is in line with global trends, market sentiments are expected to
improve in the days to follow. In the past couple of weeks, there
has been an improvement in HRC prices in a range between $25 and
$30 per tonne. Domestic prices also rose by an average of Rs 1,500
which were the mainstay of the company, have now come down due to
restrictive trade barriers in major steel markets overseas. While
exports were 40 per cent of the earlier sales, domestic sales have
risen by 13 per cent in the current year. Exports were down to 4
lakh tonnes against 7 lakh tonnes in the previous year.