Troubled steel baron fighting back with profit in Australia

Metal magnate Sanjeev Gupta has made record profits at his Australian company.

It’s a boost for the industrialist who was once dubbed the “Savior of Steel” after years of financial strain following the collapse of his group’s main lender, Greensill Capital.

Documents filed by Gupta’s Liberty Primary Metals, first reported by the Australian newspaper, reveal a profit of $434m (£240m) for the year to June 30, boosted by rising coal revenues.

Gupta’s Liberty Steel Group said last month it was approaching a deal to restructure debt payments with creditors, including troubled European bank Credit Suisse. Such a deal could provide Liberty Steel with a way out of the insolvency proceedings initiated by creditors.

The collapse of Greensill in 2021 sparked fears of irreparable damage to Gupta’s empire, which reportedly employs 35,000 people worldwide. His Australian company is due to scrape together another $150 million by the end of this year to offset the damage caused by Greensill.

This follows $148 million in Greensill-related funding that has already been repaid.

The group’s refinancing efforts have been complicated by an ongoing investigation by the Serious Fraud Office into GFG Alliance — the informal collection of companies overseen by Gupta. GFG has denied any allegations.

Gupta, 51, was once praised by the then Prince Charles for his plan to revive the steel industry. Others feared that the Indian-born mogul’s creation of a global conglomerate was a house of cards.

The Australian arm of his group includes the Whyalla steel mills and iron ore mines, which have benefited from rising commodity prices over the past year. Liberty Primary Metals had $78.6 million in cash at the end of the year with total sales of $3.1 billion.

Credit Suisse and Citibank filed for bankruptcy last spring for Whyalla Steelworks’ holding group to force Gupta to pay the millions owed. He was able to refinance the debt and is now looking at expansion plans Down Under.

But Gupta’s UK business would still face challenges as energy prices rise and the economy shrinks.