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According to Mining News Pro -However, as compared to the second quarter of previous fiscal year FY18, the company’s crude steel output has posted a surge of 23% as the same was recorded at 0.85 MnT in Q2 FY18.

In Q2 FY19, Bhushan Steel’s sales rose by 10% y-o-y basis to 1.14 MnT against 1.03 MnT in Q2 FY18. On Q-o-Q basis, company’s sales have increased by 34% as the same was 0.85 MnT in Q1 FY19.

Although the company’s financial results are yet to come out, in Q1 FY19, the company reported a standalone net profit of INR 2,104.3 crore against a net loss of INR 1,486.13 crore in the year-ago period. The company reported total revenue from operations at INR 4,623.6 crore in Q1 FY19 as compared to INR 4,176.12 crore in Q1 FY18.

Tata Steel had won the bid to acquire debt-laden Bhushan Steel in an insolvency auction in May’18. The bankrupt firm was among the 12 stressed assets the RBI had referred for NCLT proceedings last year. Tata Steel acquired Bhushan Steel through its wholly-owned subsidiary Bamnipal Steel.

Tata Steel acquired 72.65% in the debt-laden firm for INR 158.89 crore and provided additional funds to the tune of INR 35,073.69 crore to Bhushan Steel by way of debt/convertible debt. The remaining 27.35% of Bhushan Steel`s share capital are held by Bhushan Steel`s existing shareholders and the financial creditors who received shares in exchange for the debt owed to them.

In the start of ongoing week, Tata Steel rechristened Bhushan Steel as Tata Steel BSL Limited. Tata Steel also plans to raise Bhushan Steel`s production to 4 MnT by the end of this year while the plant in Odisha has a capacity of 5 MnT per year. At present, it is producing 3.5 MnT of steel. Following the acquisition of Bhushan Steel, the Tata Steel is also working towards improving its safety and environmental aspects of the unit to match its internal standards.