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MMTC Ltd.

BSE: 513377 Sector: Others
NSE: MMTC ISIN Code: INE123F01029
BSE LIVE 15:46 | 21 Nov 79.25 -1.40
(-1.74%)
OPEN

80.70

HIGH

83.00

LOW

78.90

NSE 15:59 | 21 Nov 79.05 -1.50
(-1.86%)
OPEN

80.90

HIGH

82.95

LOW

78.60

OPEN 80.70
PREVIOUS CLOSE 80.65
VOLUME 735762
52-Week high 101.60
52-Week low 41.20
P/E 273.28
Mkt Cap.(Rs cr) 7,925
Buy Price 79.25
Buy Qty 267.00
Sell Price 0.00
Sell Qty 0.00
OPEN 80.70
CLOSE 80.65
VOLUME 735762
52-Week high 101.60
52-Week low 41.20
P/E 273.28
Mkt Cap.(Rs cr) 7,925
Buy Price 79.25
Buy Qty 267.00
Sell Price 0.00
Sell Qty 0.00

MMTC Ltd. (MMTC) - Chairman Speech

Company chairman speech

MMTC LIMITED ANNUAL REPORT 2009-2010 CHAIRMAN'S REPORT Ladies and Gentlemen, On behalf of the Board of Directors and my own self, I welcome all of you to the 47th Annual General Meeting of your Company. The annual report of the Company has already been provided to you and with your permission I will take it as read. MMTC - Leading from the front: The year 2009 was a tough year for everyone. Global Output contracted by nearly 1% while global trade reduced by 25%. However, towards the end of the fiscal, most of the developed economies started reporting positive growth. The developing economies who showed a modest 2.5% growth in 2009 started to accelerate. Manufacturing and service sector performance indices improved. Over the same period, your Company also experienced unprecedented challenges Despite the odds being adverse, focused leadership and dedicated teamwork ensured that your Company navigated these difficult times successfully Your Company concluded fiscal 2009-10 with its highest ever top line for the sixth consecutive year and achieved a business turnover of Rs.45,124 crores registering a growth of more than 22% over the previous year. MMTC also earned the highest ever net profit after tax of Rs.216 crores registering a growth of 54% In commemoration of this historic milestone your Company has issued bonus shares in the ratio of 1:1 to the eligible shareholders during 16th to 18th August 2010, subsequent to the subdivision of face value of the shares of your Company from Rs.10 each to Rs.1 each, issued to the shareholders on 31st July 2010. Besides dividend @ 90% on the share capital for the year 2009-10 has been proposed by the Board of Directors, which works out @ 45% of the enhanced share capital post bonus issue. The performance is a source of deep satisfaction for all of us in the Company as it bears handsome testimony to the strong enterprise strength and successful strategic initiatives. This has led to a successful transition of your Company's businesses from a monopolistic position in the regulated market of yesteryears to a position of leadership in the liberalized and highly competitive markets of today. With this MMTC as a Company has once again successfully demonstrated the vision and spirit to remain at the top. A Company with over four decades success, MMTC is today a symbol of the resurgent India - young, confident and ambitious. SUBSIDARY COMPANY: During 2009-10, the wholly owned subsidiary of your Company -MMTC Transnational Pte. Ltd. Singapore (MTPL) achieved its second best business turnover of US$ 525 million. MTPL generated its second highest profit after tax of US$ 6.54 million during 2009-10. The net worth of MTPL stood at US$ 18.03 million as on 31st March 2010. MTPL has so far paid total dividends of US$ 6.15 million, as against capital of US$ 1 million contributed by your Company, besides multiplying its net worth by 18 times since its inception. MMTC'S PROMOTED PROJECT - Neelachal Ispat Nigam Ltd. (NINL): You are aware that your Company has set up Neelachal Ispat Nigam Limited (NINL) - an iron & steel plant of 1.1 million tonnes per annum capacity, 0.8 million tonne coke ovens and by-product unit with captive power plant, jointly with Govt, of Orissa. The project has firm iron ore supply linkages and also has captive iron ore mining rights for reserves estimated at about 150 million tonnes. The construction of phase-II of the Project with an estimated cost of Rs.1,855 crores is under progress. During the year 2009- 10, NINL achieved a sales turnover of Rs.1,580 crores and generated net profit of Rs.38 crores. LOOKING AHEAD: I look ahead with guarded optimism. While the global output is expected to grow by more than 4%, the early signs of coming out of the recession cannot be taken for granted since recovery after this kind of crisis may possibly be slow and weak. Under this scenario, there is an imperative need to focus on continuous realignment of our trade strategies and priorities to take advantages of dynamics of global trade and the opportunities provided by the multilateral trading platform for consolidating our core areas of operations. Besides we have to concentrate on enhancing future sustainability of the company by vigorously pursuing the various value multiplier initiatives taken in the recent past. With the growing liberalization and economic reforms, there is an increase in the opportunities available to trading companies like MMTC, which should be encashed. After four decades, MMTC stands on the path-breaking route to a new and eventful journey to emerge as one of Asia's biggest trading companies, in fact setting the foundation for MMTC's growth into a truly global enterprise. VALUE MULTIPLIER INITIATIVES: Along with our performance, we have taken a systematic and synergetic approach to integrate backwards and forwards to support our trading activities by following the JV route. It is expected that all these JVs will give us the much needed impetus to grow and generate both profits and employment as also provide the much needed infrastructure for our trading activities. To evolve a new business model for taking advantage of new opportunities emerging in the free market environment, your Company has set up 'Indian Commodity Exchange Ltd' jointly with M/s Indiabulls Financial Services Ltd. and others, which has already commenced operations in November 2009. This has facilitated your Company to increase business volumes through increased trade in commodity with your Company having flexibility to introduce such commodities in the Commodity Exchange, which are of its interest. Your Company has also participated in the equity of a Currency Exchange namely 'M/s United Stock Exchange' (USE), which was launched in Mumbai on 20th September 2010. USE is promoted by all of India's public sector banks, five leading private sector banks, three corporate institutions and BSE. Participating in Commodity and Currency Exchanges is in line with your Company's corporate objectives as it would develop trade related infrastructure, provide services to SMEs, improve return on capital employed, besides helping your Company in becoming a taily international leader. Your Company has joined hands with Pamp A.G of Switzerland, which is a leading international medallion producer, as a joint venture partner for setting up a gold/silver medallion manufacturing unit, which would also include a gold refinery as an integral part. The medallion manufacturing unit being constructed in Haryana is likely to commence commercial production in first quarter or 2011. For marketing of the finished products from this unit, MMTC's homegrown brand of 'SANCHI' silverware, as well as jewellery from other sources, your Company has set up, in conjunction with Gitanjali Gems, a leading Indianjewellery company, a chain of retail stores at various cities in India. 14 retail outlets under the brand name 'SHUDDHI' have already been opened in various cities/ towns in India. In the area of logistics, your Company has formed a consortium jointly with SICAL Logistics and L&T Infrastructure for setting up a permanent berth for loading iron ore at Ennore Port, which is likely to be operational by October 2010. A similar initiative has been undertaken for developing a deep draught iron ore berth at Paradeep Port. This project is in the initial phase and is likely to be operational towards end 2013. In the area of mining your Company has been allotted a coal mine in the Jharkhand State having estimated reserves of about 700 million MT. The prospecting license for the said mine has since been received and pre- feasibility study commenced. Also your Company is setting up a joint venture company with M/s. TATA Steel Ltd. for exploration and development of mines for minerals, ferrous and non-ferrous ores, precious metals, diamonds and coal etc. Acknowledgement: The business environment in which your Company operates is being rapidly transformed. The future belongs to those who can sight and seize opportunities inherent in this change. The need to create a winning corporation dominates the consciousness of your Board, and I wish to assure you, on behalf of the Board that every action is being taken in providing the organisation with additional vitality and purpose. MMTC's journey of excellence is undoubtedly contributed by many stakeholders - Government, suppliers, customers, associates and joint venture partners - who have stood by your Company through in is voyage oi challenge and change, as we persevered to create a national institution. I would like to lake this opportunity to convey our grateful thanks to all of them. The biggest two strengths of a trading company are its people -dedicated, committed and competent - and our financial strength which will keep the Company going. To my mind, the greatest challenge is to have a motivated and energized work-force to trade effectively, garner further trading acumen and obtain risk taking abilities. Above all we must learn to nurture relationships. Trading can be successful as it survives on long-lasting relations and goodwill bunt over the years with our suppliers, business associates, shareholders and stakeholders and more than anyone else, or customers. The trust that MMTC has gained over the years goes far beyond immediate success. This has been the biggest achievement for MMTC. I am therefore obligated to all of MMTC's employees for their consistent high-level performance, commitment for the Company goals and for their team effort. Without their full involvement this kind of performance would not have been possible. My speech would not be complete without thanking you - the shareholders - for the immense confidence you have reposed in the Company. I look forward to your continued support for MMTC in the years to come. I once again thank you all for attending this Annual General Meeting of our Company. As we move towards a new sunrise and as a new dawn breaks over India, MMTC will undoubtedly contribute its best to give India its rightful place amongst the leading developed countries of the world. It is for us to paint new landscapes and make our turf bigger and wider to tap the great opportunities that will unfold for India and the rest of Asia. Thankyou New Delhi SANJIV BATRA 21st September 2010 Chairman and Managing Director Source: THE ECONOMIC TIMES Dated : 24 September, 2010.