AM/NS India profits may rise 2.5x by 2026
AM/NS India expects its operating profit and cash flows to grow by 2.5 times once the first phase of its expansion is completed by 2026, and four times from the current levels after the completion of its second phase of expansion, the company said at an investor meet on Wednesday.
The company, a joint venture between global steel majors ArcelorMittal and Nippon Steel, is currently generating around $2.5 billion in operating profit and $1.7 billion in cash flows. Since its acquisition in 2019, the company has generated $5.8 billion of cash, which has been used for securing the supply chain and other strategic acquisitions.
AM/NS India, whose operating profit per tonne has been lower than the average of its Indian peers since 2019, also has managed to close this gap and now has a higher operating profit per tonne than the average of its peers in the first half of 2024. This was done through a turnaround plan focusing on the operations, finance, sales, procurement efficiencies and debottlenecking capacities, the company said.
It operates a plant at Hazira in Gujarat, which has an annual production capacity of 9 million tonnes of steel and is among the largest producers of steel in the country. In its first phase of expansion, the company will be adding 6 million tonnes of steel-making capacity at this plant for ₹60,000 crore, taking total capacity at the plant to 15 million tonnes.
The first phase of capacity expansion commenced in 2022.
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