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MSP Steel & Power Ltd.

BSE: 532650 Sector: Metals & Mining
NSE: MSPL ISIN Code: INE752G01015
BSE 00:00 | 25 Jan 14.20 0.75
(5.58%)
OPEN

13.05

HIGH

14.55

LOW

12.70

NSE 00:00 | 25 Jan 14.25 0.80
(5.95%)
OPEN

13.00

HIGH

14.50

LOW

12.70

OPEN 13.05
PREVIOUS CLOSE 13.45
VOLUME 381956
52-Week high 18.90
52-Week low 7.00
P/E 17.11
Mkt Cap.(Rs cr) 547
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 13.05
CLOSE 13.45
VOLUME 381956
52-Week high 18.90
52-Week low 7.00
P/E 17.11
Mkt Cap.(Rs cr) 547
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

MSP Steel & Power Ltd. (MSPL) - Chairman Speech

Company chairman speech

The Covid-19 viral outbreak was different from variants of the past. It combines thespeed of spread with debilitation and death. India and many other parts of the World arein the grip of second or even third waves of the pandemic much fiercer than anything wesaw last year. It is a health crisis of the kind we have not seen in the generations. Myheart goes out to everyone out there who has suffered the loss of loved ones i amconfident we will eventually get it under control but until then we must continue tofollow safety protocols and directives issued by authorities and I am confident we willemerge stronger postthis pandemic.

The global economy suffered a significant shock in the early part of FY 2020-21 but hassubsequently seen a recovery in demand. Demand for steel started to increase in the secondhalf of 2020 as result of a return to economic activity and an increase in infrastructurespending in some parts of the world. Unprecedented fiscal and monetary stimulus providedby almost all nations deployment of COVID-19 vaccines and the reopening of businessesresulted in a broad-based recovery and the steel industry also benefited.

The World Steel Association (worldsteel) forecasted that global steel demand will climb5.8% in 2021 to reach 1.874 billion metric ton (mt). Demand will further grow by 2.7% in2022 to reach 1.925 billion mt. Notably growing demand for steel has resulted in sky-highprices of iron ore the most important input for steel industry.

Also Worldsteel estimated that global steel demand declined a mere 0.2% in 2020despite the outbreak of the deadly coronavirus across the world. This was mainly due to a9.1% jump in steel demand for China in 2020 which offset a 10% contraction in the rest ofthe world. The earlier projection in October 2020 was for a 2.4% contraction in demand in2020 and a 4.1% recovery in 2021to 1.795 billion mt.

Covid-19 led to a nation-wide lockdown in Q1 FY 2020-21 resulting in contradiction ofGDP by 24% in the quarter as most economic activity came to a halt. India then witnesseda gradual resumption of economic activity from 2nd Quarter of FY 2020-21 driven bygovernment spending on infrastructure exports and rural economy. There existed aprolonged lockdown. Steel manufacturing plants were working even during the lockdown butat a slower rate. As the world economy started to open again the demand for end-usersegments started rising again from the third quarter of FY2021. With the second wave ofvirus the export sector started to suffer again but the impact this time was less thanthat of last year due to the arrival of the COVID- 19 vaccine. The vaccine acted as asavior to the steel export sector.

In FY 2021-22 India is projected to grow by 8%-9.5% driven by a) ongoing Vaccinationsupporting the current recovery momentum; bjrestart of investment cycle with significantspending on infrastructure and cjcontinued recovery in consumption supported by urbandemand accentuated by work from home and personal mobility preferences along with risingrural incomes and affordability. Flowever risks in the near term could stem from arenewed lockdown restrictions pursuant to new wave(s) of Covid-19.

India's current steel producing capacity is 140 mtpa and the figure is anticipated torise to 300 mtpa by 2030-31.In FY 2021 India exported 17.3 metric tonne(MT) of steel tothe world which accounts for a 56% rise over the previous years. India has a capacity of144 MT of crude steel and the domestic demand was of 95 MT in FY 2021 which is stillgrowing.

The growth in the Indian steel sector has been driven by domestic availability of rawmaterials such as iron ore and cost-effective labour. Consequently the steel sector hasbeen a major contributor to India's manufacturing output.

With dedication and relentless commitment from each of the members of MSP Steel &Power Ltd the overall performance of the Company has improved with increase in EBITDA by3.56%. Your Company reported profitable growth in revenue by 12%. Our profit before tax(PBT) for the year ended 31st March2021 is Rs. 864.14 lakhs as compared to Rs. (6635.49)lakhs in the previous year.

Amidst the pandemic a key task of the Board of Directors and the management of theCompany has been to focus on the health and well-being of its employees while calibratingproduction in line with market conditions. The Company has put in place strict protocolspertaining to this pandemic within the Plant as well as office premises as per statutoryguidelines. It has also provided medical amenities in order to protect its work force inboth the places in which it operates.

Your Company will continue to improve efficiency reduce costs enhance profitabilityand create moral value for our shareholders. Your Company strives to increase its marketshare by focusing on product quality and development and by leveraging its longtermrelationship with its customers.

I take this opportunity to thank all for the efforts of all those who contributed toour growth-our shareholders customers employees partners business associatessuppliers stakeholders and community members for their continued support and confidencein the Company and the management during this challenging year. I extend my sinceregratitude to all those who have given their contribution during these difficult times.

Warm Regards
Suresh Kumar Agrawal
Chairman

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