It is indeed a pleasure to reconnect with you at the end of another nancial yearwherein your Company through its mantra of "looking beyond challenges" istrying to navigate through the slow economic environment. With our 1.5 MTPA integratedsteel manufacturing facility at Raigarh Chhattisgarh and upcoming pit head thermal powerplant of 1050 MW (2 units of 525 MW each) in Angul Odisha we are looking at a new phaseof growth for the Company.
The economic growth during the year ended at an extremely disappointing level of 5%.The expected growth and investment in infrastructure such as roads highways airportsports and manufacturing facilities was slow thereby resulting in considerable low demandfor steel.
Having said that your Company demonstrated strong nimbleness and resilience to facechallenges head-on as evident from our satisfactory levels of pro tability under toughprevailing circumstances. We embarked on proactively realigning our business to adjust tocurrent market conditions enabling us to maintain revenue from operations to Rs.1979.62Crores in FY 13 up from Rs.1897.38
Crores in the previous scal. However pro t decreased from the earlier level ofRs.288.86 Crores to Rs.250.32 Crores in the year under review due to pressures on marginsin the industry.
Progressing into the next scal we are extremely optimistic about enhancing our protability. Our 1.5 MTPA integrated steel plant at Raigarh will produce structural steellongs
(TMT Bars) and ats (Plate Mill Plates PMPs) to cater to the rapidly growinginfrastructure & construction industry. The integrated facility would reduce cost andwould help in optimizing operations very competitively. We would also be for the rst timeentering the consumer markets and would be introducing our rebar under "Monnet SteelTMT" brand. The branded steel is expected to improve margins further.
Additionally in line with our business strategy to diversify business operations andstrengthen position the Company through its subsidiary Monnet Power Company Limited(MPCL) is building its power generation capabilities as an Independent Power Producer. Theexpansion of the 1050 MW power project at Angul Odisha is well on track. This powerproject envisaged as amongst the lowest cost generating units in India makes usoptimistic about generating robust pro tability from our power operations.
By systematically approaching the value proposition in every aspect of what we do weat Monnet leverage our competitive advantages and maximize our value to all ourstakeholders.
A key element of our business strategy is to operate as a low cost producer in a highlycompetitive business environment. At our plants and sites we employ the latest equipmentand technology and advanced manufacturing facilities to achieve ef cient production ratesand conversion costs. We remain sharply focussed on driving shareholder value byconcentrating on sound operational performance strategic growth initiatives and balancedcapital allocation. We also continue to be disciplined in pursuing additional acquisitionopportunities that are highly synergistic and meet our return on capital requirementswhile maintaining a stable nancial position.
As we look forward we remain encouraged by the long-term macroeconomic fundamentalssupporting our businesses. We expect the economy to return on the path to recovery therebypushing investments in the infrastructure and construction sector and generating increaseddemand for steel. Through further investments in technology to improve ef ciencies andthrough acquisitions to expand our footprint we are optimistic about enhancing our protability and maximizing returns to our stakeholders.
Being a part of the community is prime to our business at Monnet. Through MonnetFoundation we continued investing funds for local community initiatives and socialinfrastructure in and around areas of our operation. Our solidarity to the game of boxingremains unchanged and by providing impetus to the game and the players both at grassrootand higher levels we aspire to create many more sporting icons who will de nitely bringglory to the nation.
Earlier in the year Monnet felicitated Olympic Bronze medallist MC Mary Kom and theentire boxing contingent for having put up one of Indias best performance ever inboxing at the Olympics. Under the aegis of our commitment of infrastructure developmentwe have taken up the assignment of beauti cation and landscaping of airports in
Bhubaneswar Kolkata and Raipur.
WITH 1.5 MTPA INTEGRATED STEEL MANUFACTURING FACILITY AT RAIGARH CHHATTISGARH ANDUPCOMING PIT HEAD THERMAL POWER PLANT OF 1050 MW (2 UNITS OF 525 MW EACH) IN ANGULODISHA WE ARE LOOKING AT A NEW PHASE OF GROWTH FOR THE COMPANY
Monnet is ideally positioned to respond to the challenges and capitalize on theopportunities that lie ahead. We appreciate the efforts of our employees and theiron-going commitment to meet the challenges that are inherent in our highly competitivebusiness. On behalf of the Board I would also like to take this opportunity to express mygratitude to our investors bankers and stakeholders for the trust they have shown in ourcapabilities. Monnet is con dent of scaling greater heights in the years ahead and we lookforward to your support in this journey.
Chairman & Managing Director