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Monnet Ispat & Energy Ltd.

BSE: 513446 Sector: Metals & Mining
NSE: MONNETISPA ISIN Code: INE743C01013
BSE 12:40 | 18 Jul 10.68 -0.56
(-4.98%)
OPEN

10.70

HIGH

10.70

LOW

10.68

NSE 12:23 | 18 Jul 10.60 -0.55
(-4.93%)
OPEN

10.60

HIGH

10.60

LOW

10.60

OPEN 10.70
PREVIOUS CLOSE 11.24
VOLUME 3328
52-Week high 38.50
52-Week low 8.89
P/E
Mkt Cap.(Rs cr) 214
Buy Price 0.00
Buy Qty 0.00
Sell Price 10.68
Sell Qty 29804.00
OPEN 10.70
CLOSE 11.24
VOLUME 3328
52-Week high 38.50
52-Week low 8.89
P/E
Mkt Cap.(Rs cr) 214
Buy Price 0.00
Buy Qty 0.00
Sell Price 10.68
Sell Qty 29804.00

Monnet Ispat & Energy Ltd. (MONNETISPA) - Chairman Speech

Company chairman speech

Dear Shareholders’

As you are aware your Company made a steady growth in the last 20 years of itsexistence and maintained a consistence record of building up the capacities and increasein the revenues of the Company. Transformation Sponge Iron player to a Steel player waspossible with the inspiration and support of all the Shareholders and lenders.

The year 2014-15 unraveled unexpected series of events which were beyond our scope ofadvance preparation and hit the Company from many ends.

First came the decision of Hon'ble Supreme Court of India to de-allocate all Coal minesin the Country which included five mines in the Monnet forte. It included an operatingmine closer to our operation in Raigarh which was providing a big strength to ouroperations in terms of stable supply quality of coal and distinct pricing advantage. Twoother mines which were advance at the stage of approvals one for our steel plant andanother for our upcoming power plant at Angul also got cancelled.

The year also saw steep decline in the demand and pricing of Steel product across theboard Iron Ore the principal RM for steel declined in prices across the globe but actuallybecame scare in availability and increased in prices in India on account of closure ofmany mine in the Iron Ore hub of State of Orissa. Indian industry faced high Iron Oreprices against declining selling prices of end products at least till December 2014. Theyear ended with huge challenges on all fronts. The performance of Company drew no comfortwith a loss of Rs.795 Crores which includes one-time loss of Rs.252 Crores. On account ofone time Royalty payment on Coal extracted in the last 10 years of operations of Mines asper the order of the Hon'bal Supreme Court.

The current conditions in the industry continue to be challenging the demand for steelis not showing any sign of recovery which calls for a new orientation and approach to runthe business of the company. We have recently embarked on major cost cutting exercise anddrive besides constantly focusing on the efficiency of operations to rationalizeproduction cost to realign the operation of plant from time to time according to themarket conditions.

I believe the dynamics of Steel industry have under gone a dramatic change which callsfor an engagement with the lenders to re-organize the debt profile of the company with aview to establish a viable and sustainable level of debt. The exercise is being initiatedat right earnest by soliciting the support of lenders within regulatory permissions toachieve debt rationalization and asset classification.

The Company will keep the Shareholder posted with the developments and assure you mycommitment to riggle the Company out of the current emphases.

Sandeep Jajodia

Chairman & Managing Director