I trust your family and you are keeping well in the midst of unprecedented and intensesecond wave of COVID-19 Pandemic.
Thank you for your continued support which also contributed to the success of ourCompany.
KIOCL's response to COVID-19 Pandemic
The COVID-19 viral outbreak was different from variants of the past. It was deadlycombination of speed of spread with debilitation and death. During this challengingperiod your Company faced two-fold responsibility of uninterrupted operation of Plant andprotecting the health and safety of all its stakeholders. Your Company responded with amix of cautious engagement social distance and virtual engagement. The result is that wecould minimize the virus infection to the employees still continued production activitieswithout much hinderances.
Enhancing shareholder value
It gives me immense pleasure and sense of pride in stating that during the FinancialYear 2020-21 your Company has performed exceptionally well despite uncertainty ininternational market for iron ore Pellets since outbreak of COVID-19 Pandemic as well asan intense competitive market. The performance is reflective of the hard work andperseverance of dedicated employees working relentlessly for your Companys success.Please join me in congratulating the leadership and employees of the Company fordelivering an exceptionally successful Financial Year.
Let me share the key performance highlights for the Financial Year 2020-21. During theyear your Company had:
Produced 2.210 million tons and dispatched 2.311 million tons of Pellet;
Achieved Export sales of 1.844 million tonnes of Pellets reaching to the highestafter closure of its captive mine;
Achieved a record Total Income of ^ 2477.83 crores which is highest sinceinception of the Company;
Earned a Profit before Tax of ^ 410.23 crores and Profit after Tax of ^ 301.17crores;
Generated revenue of ^ 4.57 crores from mineral exploration activities and workin hand of ^ 114.69 crores;
Earned a Net Foreign Exchange of ^ 1759.61 crores;
Incurred a CAPEX of ^ 41.05 crores;
Completed Buyback of 14174469 equity shares at a price of ^ 110/- per equityshare for an aggregate consideration of ^155.92 crores (excluding tax); and
Proposed to pay a total dividend of ^ 99.67 crores for the FY 2020-21 which is16.40 % on the Paid-up Equity Share Capital of the Company subject to approval ofshareholders.
World steel forecasts that steel demand to grow by 5.8% in 2021 to reach 1874 milliontonnes (Mt) after declining by 0.2% in 2020. The current forecast assumes that theongoing second or third waves of infections would stabilize in the second quarter and thatsteady progress on vaccinations would allow a gradual return to normalcy in majorsteel-using countries. Despite the disastrous impact of the pandemic on lives andlivelihoods the global steel industry was fortunate enough to end 2020 with only a minorcontraction in steel demand. This was due to a surprisingly robust recovery in China withgrowth of 9.1%. In the rest of the world steel demand contracted by 10%. In the comingyears steel demand is expected to recover firmly both in the developed and developingeconomies supported by pent- up demand and Governments recovery programmes.However for most developed economies a return to the pre-pandemic levels of steel demandwill take a few years. While it is hoped that the worst of the pandemic is passing thereis still considerable uncertainty for the rest of 2021. The mutation of the virus andprogress of vaccinations withdrawal of supportive fiscal and monetary policiesgeopolitics and trade tensions could all affect the recovery envisaged in this forecast.
Way forward - Creating KIOCL of tomorrow
For a sustainable future your Company is continuously working on various long term /short term expansion / diversifications projects which are at different stages ofimplementations / approvals from different regulatory authorities at the level of StateGovernment and Central Government.
Corporate Social Responsibility - Growth with Goodness
As part of its Corporate Social Responsibility initiatives your Company continued itscomprehensive and need based support to the communities in and around its projects area.In its commitment to the underprivileged communities the Company carried out various CSRactivities during the year to have an impactful social development. Your Company alsocontributed to the PM CARES FUND to support and strengthen the hands of Government ofIndia to combat and control COVID-19 Pandemic.
The philosophy of your Company in relation to corporate governance is to ensuretransparency disclosures and reporting that confirms fully with the laws and regulationsof the country in order to promote ethical conduct & practices throughout theorganisation for enhancing stakeholders' value. Your Company is committed to complyingwith the provisions of SEBI (Listing Obligations and Disclosure Requirements)
Regulations 2015 relating to Corporate Governance and the guidelines on CorporateGovernance for Central Public Sector Enterprises issued by Department of PublicEnterprises Government of India from time to time.
I take this opportunity to thank the Board Members and particularly distinguished Govt.Nominee Directors Independent Directors for their continued leadership support to theCompany and its employees. I also thank employees of Company without whose efforts andcommitment the Company could not have performed so well in the current challengingconditions. I would also like to deeply thank and acknowledge the continued co-operationtrust and support of various Government/ Regulatory authorities Company's valuedcustomers suppliers vendors investors bankers and shareholders.
Your Directors deeply regret the loss of life due to the outbreak of COVID-19 and aregrateful to every individual who risked their life and safety to fight this pandemic.
Chairman-cum-Managing Director (Addl. Charge)