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Tamil Nadu Telecommunications Ltd.

BSE: 523419 Sector: Engineering
NSE: TNTELE ISIN Code: INE141D01018
BSE LIVE 13:58 | 13 Nov Stock Is Not Traded.
NSE 13:51 | 07 Dec 2.20 0
(0.00%)
OPEN

2.20

HIGH

2.20

LOW

2.20

OPEN 1.28
PREVIOUS CLOSE 1.28
VOLUME 751
52-Week high 4.66
52-Week low 1.13
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.28
Sell Qty 628.00
OPEN 1.28
CLOSE 1.28
VOLUME 751
52-Week high 4.66
52-Week low 1.13
P/E
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.28
Sell Qty 628.00

Tamil Nadu Telecommunications Ltd. (TNTELE) - Chairman Speech

Company chairman speech

Annual Report 1999-2000 TAMILNADU TELECOMMUNICATIONS LIMITED Ladies and Gentlemen, It gives me great pleasure in welcoming you all to the Twelfth Annual General Meeting ot your Company. The Directors Report and the Audited Accounts for the year ended 31st March 2000 have been with you and with your permission I take them as read. PERFORMANCE IN THE LAST YEAR The year 1999-2000 was a remarkably fruitful year for your Company with manifold achievements in all the functional areas - Production, Sales and Collections. We have surpassed the highest records set up in 1998-1999 for these parameters, by wide margins. I am very happy to state that the production in the JFTC factory at Arakkonam has crossed 9 LCKM, and despatches exceeded 8.75 LCKM, recording an improvement of 25.6% in production and 26.67% in despatches (Sales) compared to the previous year. During 1999-2000, the Turnover of the Company grew up by 40.8%, the Operating Profit by 22.4%, and Net Profit by 25% over the previous year. This saga of successful operations has enabled your Directors to recommend a Maiden Dividend of a total of 7.5% for the year 1999-2000. The following significant achievements of TTL in 1999-2000 merit special mention: * The installed capacity of the JFTC Plant at Arakkonam has been enhanced from 1.2 Million CKM to 1.7 Million CKM with a marginal addition of machinery lines and testing facilities. * The landmark achievement of your Company was the successful completion of the OFC factory project at Maraimalai Nagar within a remarkably short span of about one year,inspite of machinery and cash-flow problems. The machinery imported from Finland was installed and commissioned by our own engineers under the supervision of Nextrom / Fujikura Experts. The facility received Infrastructure Clearance from DoT on 6th July 1999, after due evaluation. Commencing from 24th June 1998, when the foundation stone was laid for the factory by the Hon'ble Chief Minister of Tamilnadu, the whole process of civil construction works, installation and commissioning of machinery lines, utilities etc., testing and commissioning followed by infrastructure approval by DoT, has taken slightly more than one year, which is a remarkable achievement for any telecom cable manufacturing industry in India. The OFC Plant could successfully go through the procedures of Prototype Production, Type Approval and Bulk Production Clearance by DoT QA and TEC, New Delhi. TTL successfully participated and won its first commercial order from Karnataka Telecom Circle on 25th November, 1999 and commenced commercial production w.e.f. 1st December, 1999. * The OFC factory won the coveted IS / ISO 9002 International Standards Certification within a significantly short time of about 2 months on the 23rd of February 2000 from BIS, accredited by RVA, Netherlands. * Within a short period of 4 months of commercial production, the OFC factory has executed orders for over 1000 Cable Kms. worth about Rs. 450 lakhs. * The Group twinner machinery intended for the manufacture of smaller size cables upto 20 pairs. at a cost of about Rs.1.20 crores, financed from internal resources, have been installed and commissioned in the JFTC Plant during the year. This was a major factor in enhancing the certification of the plant capacity. PROSPECTS FOR THE FUTURE During the first quarter of 2000 - 2001, the OFC Plant has executed orders for 1100 Cable Kms. of 6F OFC successfully. It has also won the largest order for 1 2F OFC from DoT, New Delhi of 4756 Kms valued at about Rs 26 crores. The enhanced installed capacity of the JFTC Plant along with excellent delivery rating and competitive price rating of TTL has helped your Company to bag the largest ever order of 8,50,000 CKM from Dept. of Telecom, the APO for which was issued in August I am very glad to inform you that, your Company has also won the FIRST Export Order for OF Cable in August, 2000 from M/s. Ahmed Yousef Behbahani Est. KUWAIT for 22 Kms. of 24F cable, through TCIL. Your Company has actively pursued certification from RDSO of the Ministry of Railways and after the Inspections & Prototype Testing, Type Approvals have been issued. This will enable the Company to take part in Railway tenders for OF and JFT Cables. Your Company has also actively interacted with some leading private telecom / internet service companies for supply of OFC, and, is hopeful of finalising some contracts during the Year. The existing scenario of growing demand for OF Cables has prompted the Company to immediately take up the expansion plan for the OFC Plant at Maraimalai Nagar from 7900 Cable Kms. to 15000 Cable Kms. with an estimated project cost of Rs.3.5 crores. The machinery lines for this expansion projects are scheduled for supplies during September, and, the installation and commissioning is expected to be completed in another 2 months. Manufacture of high bandwidth DWDM (Dense Wave Division Multiflexing) OF cables required for high density backbone routes, are proposed to be taken up shortly in collaboration with our Promoter M/s. Fujikura of Japan. Expansion of the OFC Plant by vertical integration with the setting up of fibre drawing facility, and, further expansion of the cable manufacturing capacity upto 24,000 Kms. is under active techno-economic evaluation. OUTLOOK FOR 2000-2001 TTL received an add-on order for 1,75,000 CKM, for JFTC from DoT based on excellent delivery rating in February 2000, which it has successfully executed by May 2000. As indicated by me earlier, TTL has won large orders for both JFTC and OFC Plants from the Department of Telecom, the value of which exceeds Rs. 80 crores. In addition, taking into account the contracts being pursued with Non-DoT organisations for Optic fibre cables, your Company can hope to exceed a turnover of Rs.100 crores during this financial year. The excellent performance of TTL during the year has attracted the attention of the Industry and the Media and, TTL has been listed as one of the Top eleven telecom cable manufacturing companies in India by the reputed communications magazine - Voice & Data in its survey for 1999-2000 published in the July issue. The enhanced operations of the OFC and the JFTC Plants forecast a really bright future for your Company in the ensuing years. ACKNOWLEDGMENTS Before I conclude, I would like to place on record, the excellent co- operation received by your Company in its operations from all the three Promoters, the Govt. of India & the Govt. of Tamilnadu, our Bankers - State Bank of India, Punjab National Bank & Andhra Bank. I also thank our esteemed customers - DoT & MTNL, suppliers of raw materials, machineries and services to our factory for their unstinting support to our operations. I do hope that all the share holders will unhesitatingly join me in extending our sincere appreciation to the TTL Team as a whole, and, to each and every TTL employee in particular, for turning out such an excellent performance during the year. I do hope that they will continue to excel their own record of performance in the coming years also. Thank you. R. GOPALAN 28th September, 2000 Chairman