It gives me immense pleasure to welcome you all for the 47th Annual GeneralMeeting of MIDHANI. As we reflect on the year passed
we are predominantly proud of achievements resilience of team MIDHANI and the inherentstrength of our technology as well as innovation. FY 2020-21 was the year when the viciouseffect of COVID-19 pandemic and the challenges faced thereby on humanity affected us. Onaccount of the COVID-19 pandemic the world has faced unprecedented challenges. With lossof lives livelihoods and stress on global supply chains the economic crisis world overhas significantly increased.
We all got a good amount of change during the course of FY 2020-21 whether it wasworking from home virtual interactions or staying indoors for days at a time
we had to adapt to something completely new. At MIDHANI we managed to adapt challengesand in these challenging times MIDHANI has recorded its highest ever Sales turnover of Rs81323.08 Lakh. We continued to leverage our operational and technological capabilities totide through difficulties. We are also keen to capitalise on emerging opportunitiesarising from the governments emphasis on 'Make in India' products. As an indigenousmanufacturer we are also poised to fulfil the country's vision of 'Aatmanirbhar Bharat'.
Performance highlights FY 2020-21
For MIDHANI FY 2020-21 has been a year of excellent performance and I am delighted toshare with you our progress during the year.
We recorded highest ever revenues of Rs 81323.08 lakh despite the disruptions causedby the pandemic registering y-o-y growth of 14.08 % in comparison to Rs 71287.57 lakh inthe previous fiscal. For FY 2020-21 MIDHANI has achieved highest ever operating profit ofRs 20626.27 Lakh for FY 2020-21 vis-a-vis Rs 16564.99 Lakh for FY 2019-20 registeringy-o-y growth of 24.52% Profit Before Tax (PBT) at Rs 22609.39 Lakh vis-avis PBT of?20208.62 Lakh for FY 2019- 20 registering y-o-y growth of 11.87% and the highest everProfit After Tax (PAT) of Rs 16629.15 Lakh vis-a-vis Rs 15973.38 Lakh achieved for FY2019-20 registering y-o-y growth of 4.11%. Highest ever export turnover of Rs 1942.47Lakh was also recorded during the FY 2020- 21 vis-a-vis Rs 1042.04 Lakh for FY 2019-20registering y-o-y growth of 86.41%.
In the beginning of the FY 2020-21 our Business operations were shut down for 45 daysdue to COVID-19 pandemic induced lockdown. The ideology of 'Extraordinary time's call forextraordinary efforts' adopted by our workforce during challenging times helped us paveout a recoup plan and within 15 days of reopening our plant operations were brought inorder. This indomitable spirit of our workforce is what helped us surmount the odds andrecord our best ever performance. Post lockdown process optimization managing capitalexpenditure working capital requirements were key factors that were addressed byManagement.
These efforts cumulatively have shaped FY 2020-21 as a best ever in terms of SalesOperating Profit Profit Before Tax (PBT) & Profit After I Tax (PAT).
When compared to the previous fiscal year the Value of Production (VoP) has decreasedby 20.4% to i Rs 77164.22 Lakh in FY21. Owing
to our operational efficiency our
EBITDA margins also recorded an
impressive 24.06 % y-o-y growth.
EPS for the year stood at Rs 8.88
and our Company recommended/
declared Dividend of Rs 2.78 per
equity share @27.80% for ! FY 2020-21.
As at April 1 2021 MIDHANI had an ; order book of Rs 137200 Lakh out ; of whichCompany booked order ; worth Rs 50480 Lakh during I FY 2020-21.
Leveraging our core strength
During the year MIDHANI has dispatched its first consignment of high temperature alloyfor the 'Kaveri Dry Engine Program' for powering Unmanned Combat Aerial Vehicle (UCAV)which shall be used for various Class I and Class II components of the engine. We havealso developed spider casting fulfilling stringent Aerospace requirements for 'Semi Cryo-Engine of Satellite Launch Vehicle'.
Our indigenously manufactured impellers made of Nickel based Super Alloy weredelivered to customers and we have also delivered first ever consignment of Superfer 800(Alloy 800) SG Tubes to BHEL Trichy for its application in power reactors.
The strength of our operation stems from innovation in our production processescombined with increased efficiency and resource utilisation. We aim to leverage ourdesign engineering and manufacturing capabilities to widen our offerings in defence andaerospace markets. Moreover we are making concerted efforts to enter new markets of oiland gas mining power railways chemicals and fertilizers. With continued focus ongrowth and modernisation improvement of R&D capacities and the strength of our humanresources we strive to fulfil our ambitious plans. To successfully accomplish our goalswe have collaborated with Indian and multinational research institutions to gain access tothe necessary know-how for producing critically advanced technology products.
Contributing to the vision of Aatmanirbhar Bharat'
Government of India laid down the foundation of "Aatmanirbhar
Bharat" on the premise of "vTinT dt vou" wherein list of 101 items forembargo on the imports were notified in August 2020. Subsequently a 'Second PositiveIndigenisation List' consisting of 108 items were also notified in May 2021 to furtherboost indigenisation with active participation of public and private sector for fulfillingthe twin objectives of achieving selfreliance and promoting defence exports. Theseinitiatives by Govt. of India will nourish India's overall Defence manufacturingecosystem.
MIDHANI has taken number of initiatives in diversification and modernization ofbusiness and operation activities. During FY 2020-21 MIDHANI has spent Rs 15825.79 Lakhtowards capital expenditure. With key projects like 'Wide Plate Mill' and"Springs" to be commissioned soon along with the facility at Rohtak Haryanadedicated for armour solutions MIDHANI is well poised to play a pivotal role tofacilitate selfreliance in Defence as envisaged by Govt. of India.
Innovation Research & Development (R&D)
The product requirements of our customers changes and evolves regularly and we investsubstantial amounts in research and development efforts to pursue advancements in a widerange of technologies and products. At present there are hundreds of grades that MIDHANImanufactures and each grade has unique specification which makes R&D as an inevitablepart of our process and procedures. As a testament to our efforts in R&D we weregranted two (2) patents during the year.
Our emphasis on research and development enables us to adopt advanced technologies thataid the production of superior quality alloys and other products. It also allows us toachieve cost efficiencies and expand the scope of our operations across sectors. Duringthe year under review we have invested around Rs 574.31 Lakh for R&D.
Sustainability & creating value
During FY 2020-21 as the society was reeling against pandemic it was important forour Company to reach out to the society through various initiatives including healthsanitation education skill development etc. We consider it our responsibility to servethe communities in which we operate and create value for all our stakeholders. DuringFY21 the company undertook various CSR initiatives under health sanitation educationsports and skill development spending around Rs 350.92 Lakhs for various activities.
During the COVID-19 outbreak MIDHANI has set up shelter and beds for COVID+ patientsand distributed ration kits to families and people in need. For treatment of COVIDaffected patient our Company has provided immediate medical relief and also provided anemergency helpline no. which were helpful to address emergencies. A state of art PrimaryHealth Care Centre is also being set up to cater to the medical needs of public living inand around MIDHANI.
To minimise the impact of our operations on the environment and atmosphere we striveto reduce our emission and discharge effectively.
Due to our compliance with EHS norms MIDHANI was awarded ISO j 140002015 (EMS)Certification for Environmental management j and ISO 450012018 (OHSMS)
Certification for Occupational Health and Safety Assessment during the year. Atsustainability front MIDHANI has devised ways to conserve energy During FY 2020 21MIDHANI has been certified with ISO 140012015 (Environmental Management System).
Building a people-centric organisation
At MIDHANI we attribute our success to our employees; the value added per employee washighest during FY 2020-21.
Therefore we diligently focus on creating conducive working environment for ourpeople offering them opportunities for personal as well as professional growth.
We organised skill development programmes and trainings to improve their careersenhance their expertise and boost future-ready managerial talents.
Our constant emphasis on the health and well-being of our people enabled us toformulate a COVID response mechanism immediately after outbreak of the COVID-19 pandemic.Post COVID-19 outbreak MIDHANI took pre-emptive initiatives to 'break the chain oftransmission' such as distribution of face masks face shields extensive sanitizationthermal screening social distancing and distribution of immunity booster kits. MIDHANIalso facilitated COVID-19 testing by tying up with laboratories no deduction were made insalaries of employees during lockdown period; including salaries to casual employees.
At the onset of pandemic
Human Resource department of MIDHANI was in constant touch with employees who wereimpacted with COVID. MIDHANI has also made ex-gratia payments tweaked employee welfarescheme to minimise the financial distress laid on families/ individuals due to COVID-19.
Even with our best efforts and all the preventive measures we lost four of ouremployees to the pandemic. We at MIDHANI stand in solidarity with their families and willforever be grateful to their contributions and efforts.
To ensure transparency and accountability across organisational processes the Companyabides by ethical policies that ensure good governance. Our
Board and Senior Management confirm adherence to the code of conduct on annual basisand we continuously evaluate and upgrade policies and procedures to keep theorganisational integrity intact and uphold values. MIDHANI continues to follow in bothletter and spirit the guidelines issued by the Department of Public Enterprises from timeto time. We are happy to report that your Company scored 100% as per the revised gradingnorms for CPSEs conducted by the DPE on compliance of guidelines on Corporate Governanceissued by them.
Further we have been bestowed with various awards during the FY 2020-21 includingExcellence in Industrial Productivity Excellence in Research & Development at FTCCIExcellence Awards Certification of Appreciation presented from i DRDO SKOCH Order ofMerit and SKOCH Gold Award for "Modernization and Diversification of Product &Process at MIDHANI" under "Corporate Excellence" and Certificate ofCommitment for '4-star rating' in EHS practice to name a few.
Moving forward we remain optimistic about our future endeavours. Our continuoussuccess in indigenisation of sub assemblies for Aero Naval and Energy applicationscoupled with Government initiatives in this regard has opened new avenues of success inthe Indian defence sector. Resilience and innovation will continue to remain constants inMIDHANI's future growth plans and I hope that MIDHANI scale greater heights in the comingyears.
On behalf of the Board I want to express my deepest gratitude to everyone who engagedthemselves in the battle against COVID-19. I would also like to thank all our valuedshareholders for your constant support and belief in our abilities. I am grateful to mycolleagues on the Board for their valuable guidance and acknowledge the immensecontribution and dedication of our employees towards the organisation. I also acknowledgethe enormous amount of goodwill and support that we have received from our customers theDepartment of Defence Production and all Government agencies particularly the Governmentat the Centre State and local bodies who have provided valuable guidance and support inCompany's Management.
Dr. Sanjay Kumar Jha
Chairman & Managing Director