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Dalmia Refractories Ltd.

BSE: 500481 Sector: Engineering
NSE: DALMIAREF ISIN Code: INE200F01017
BSE 05:30 | 01 Jan Dalmia Refractories Ltd
NSE 05:30 | 01 Jan Dalmia Refractories Ltd

Dalmia Refractories Ltd. (DALMIAREF) - Chairman Speech

Company chairman speech

Dear Stakeholders

Despite a global pandemic disrupting businesses in different and unprecedented ways2020-21 turned out to be pivotal for Your Company in many ways. The unpredictablelockdowns and restrictions forced us to reimagine and reset the way we do business. Theneed to insulate ourselves better from external factors such as raw material supplieslogistics talent availability etc. gave us an opportunity to evaluate and prepare YourCompany as a future-proof business.

Financial performance

We have closed FY2020-21 with a revenue of ' 218.76 Cr a nearly 25% drop from previousyear's ' 290.58 Cr. Unsurprisingly this is simply an impact of a nationwide lockdownduring the first quarter of the year which also saw delays in implementation of projectsrequiring refractories as input. Net profit dropped to ' 7.14 Cr in FY2020-21 from ' 17.53Cr in FY 2019-20 in line with the overall business performance in a disrupted year.

In Europe however despite weaker demand for steel our plant managed to achieverevenue at par with that recorded in the previous financial year.

India business

Refractories are a key input to basic industrial materials such as iron & steelcement glass and non-ferrous metals. All these industries form the backbone of economicprogress for any nation including India. You may have come across news about how Indianiron and steel makers are investing in enhancing capacity by millions of tonnes in annualproduction. This is good news for refractory makers like Your Company as demand forrefractories will consequently shoot up in times to come.

The ‘Atmanirbharta' campaign is also pushing Indian customers to opt forrefractory sources from within India vis-a-vis imports. Your Company has taken steps toensure that production lines run at full capacities so as to not lose any business owingto inability to manufacture and deliver as per customers' expectations and timelines.

Exports

Gains made by Your Company in previous years towards increasing penetration in globalmarkets are getting accelerated as international customers are seeking refractory sourcesas an alternative to China. India has emerged as a preferred source in this respect. YourCompany already has rich experience in meeting the refractory requirements ofinternational customers and is seen as a capable and attractive partner in all majorconsuming segments i.e. iron & steel cement and glass.

Dalmia GSB our business in Europe is making rapid inroads both by acquiring newcustomers and growing its share of the refractory wallet among existing customers. Withseveral cross-selling opportunities available Dalmia GSB has been able to successfullycomplete several trials for made in India refractories which are progressively convertingto proper and regular orders.

All in all Your Company is in a very good position to emerge stronger in all aspectsto realise its aim of becoming a preferred refractory partner to its customers.

I look forward to your continued support.

Sincerely

Sameer Nagpal

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