India has already emerged as the world's third largest producer of steel and with thethrust on infrastructural development the demand for Steel will go up further.
I am happy to present to you the performance of your Company for the financial year2016-17.
During the year the Indian economy grew at a respectable rate of 7.1% despite someheadwinds faced due to the demonetisation of currency. The various policies announced bythe government will strengthen the industrial base of the country. India has alreadyemerged as the world's third largest producer of steel and with the thrust oninfrastructural development the demand for Steel will go up further. This augurs well forthe Sponge Iron industry as the spurt in demand of steel will in turn create higher demandfor Sponge Iron.
Moreover with the fall in international prices of raw materials - iron ore and coalthe cost of production of Sponge Iron will come down.
Our continuous strive to enhance the value of our product supported by efficientbusiness and operating processes has resulted in higher volume as well as higher operatingprofit. In
FY 2016-17 Tata Sponge produced 390000 MT of Sponge Iron which was a recordachieving 100% capacity utilisation of the plant. The generation of power was also higherat 185 MKWH in FY 2016-17 (163 MKWH in FY 2015-16).The turnover in FY 2016-17 was Rs.61516 lacs which is lower by 2.82% than the previous year's turnover of Rs. 63304 lacs.With improved margin the net profit increased by 84% from Rs. 3189 lacs in FY 2015-16 toRs. 5874 lacs in FY 2016-17. In view of the good performance the Directors are happy torecommend a Dividend of Rs. 11 per share.
Last year there was a change in the leadership as Mr. D. P.
Deshpande Managing Director superannuated on October 31 2016. On behalf of the BoardI would like to put on record our appreciation of Mr. Deshpande's contribution to theCompany during his tenure. The Board subject to the approval of the
Our continuous strive to enhance the value of our product supported by efficientbusiness and operating processes has resulted in higher volume as well as higher operatingprofit.
shareholders of the Company has appointed Mr. Sanjay Kumar Pattnaik ExecutiveDirector as the Managing Director of the
Company w.e.f. November 1 2016.
I strongly believe that the long-term sustainability of the industry is possible onlywhen we behave responsibly towards our Society and the Environment that we live in. I amhappy to note that Tata Sponge has done a commendable job in the progress of the communityby supporting education and women empowerment as well as focusing on heath and sanitation.It is also very satisfying to add that our plant at Joda is considered as one of thegreenest' Sponge Iron companies in the country.
The overall improvement has been possible by adopting the Tata Business ExcellenceModel and implementing best practices in all processes. With the Indian economy showingsigns of better days ahead your Company is well prepared to seize the opportunity andgrow.
I would like to thank the members of the Board the management team the employees andthe Union leaders for their contribution and support.
|Yours sincerely |
|A. M. Misra |