Central India: Sarda Energy & Minerals Resume Operations

Sarda Energy & Minerals Limited (SEML), one of the largest steel producers in central India, has resumed its manufacturing facilities and the plants, the company informed in a BSE filing. Re-starting of activities will be done in a synchronized manner, it added. Operations were put on hold due to lock-down over COVID-19.

The Company has taken necessary precautions in terms of the permissions/directions issued by the authorities, the company cited in BSE filling.

SEML has two operational plants located at Raipur and Vizag & one of the lowest cost producer of steel and one of the largest manufacturer and exporter of manganese-based ferro alloys in the country.

The company produces Sponge Iron, Billets, Ferro Alloys, Pellets & Wire Rod in its Raipur based plants.

Key operational performance highlights (Consolidated):

-- As per company report, the performance was weak amid planned shutdown operations during the Q3 FY20, however the same resumed operation since end Nov 2019.

-- Company's iron ore pellet production reduced by 7% to 158,416 MT in Q3 FY '20 on Y-o-Y basis, and slightly fell by 2% on Q-o-Q compared to 162,218 MT in Q2 FY'20.

-- Sponge iron production (83,952 MT) & sales (42,624 MT) was down by 9% & 21% Q-o-Q in Q3 FY'20.

-- Wire rod production has increased by 16% in Q3 FY '20 to 39,258 MT on Q-o-Q basis and up by 47% Y-o-Y. In the same line, its sales surged significantly by 12% to 32,341 MT on Q-o-Q and up by 32% Y-o-Y.

-- Ferro Alloys production was slightly up by 3% to 30,565 MT in Q3 FY'20 on Q-o-Q basis and down by 14% Y-o-Y. In line with this, the company's sales for ferro alloys fell by 10% Q-o-Q to 28,937 MT in Q3 FY'20 & down by 5% on Y-o-Y basis.

-- Meanwhile the company's steel billet production has surged by 10% in Q3 FY '20 to 47,577 MT on Q-o-Q basis, and also it moved up by 32% on Y-o-Y basis. Billet sales decreased by 11% to 7,269 MT on Q-o-Q basis.