AN AMBITIOUS JOURNEY_AHEAD
We have emboldened our position as an organization and are now ready to take onmonumental strides towards an innovative future.
It is a pleasure and privilege to write my first letter to you as the Chairperson ofthe Board of Directors of SMIORE. I am grateful to be associated with you our largefamily of stakeholders and carry forward SMIORE's legacy. This year we have expanded thescope of our annual report to reflect and take inspiration from our past and focus on ourambition for the future. I believe that we have a firm foundation of several decades ofexperience on which we can build and consolidate an impressive future.
Since early 2020 the world and India have witnessed the unprecedented specter ofCOVID-19. Apart from our personal losses and tragedies the economic fallout of thepandemic has been grim. While we witnessed pain and trauma we also saw courage underfire. The medical community from doctors to front line workers civil society corporateIndia volunteers and government authorities from the local governments to the State andUnion governments worked relentlessly to control and mitigate the terrifying effects ofthe Pandemic. Yet like all crises this one has also brought about changes in how we liveour lives conduct ourselves and interact. We have adapted and begun to communicate withthe world virtually. Yet we are not isolated. This is also an opportune time to realisehow our actions could have far reaching consequences on society at large and theenvironment. We must realise that our lives are interconnected in more ways than we canimagine. This is thus a time
SMIORE is well-positioned to capture future opportunities in the industry and believesthat its transformation will further enable it to become an integrated player in theindustry. to remember and celebrate that humanity is one. If one of us suffers all ofus suffer. With vaccination continuing steadily across the country one hopes that we mayreturn to normalcy after this long and dreadful course of the pandemic.
OUR FY21 PERFORMANCE
At SMIORE we too exhibited resilience during the pandemic and have set new records inour financial and operational performance. In FY21 our Company generated the highest everRevenue of __747 crore as against _ 592 crore in FY20. This resulted in an EBITDA of__ 272crore as against _ 195 crore in FY20. Our performance in 20-21 was due to an increase inour realizations for both manganese and iron ore. Furthermore the commissioning of ourCoke and Waste Heat Recovery Boilers led to an operational turnaround of our Ferroalloyssegment early results of which were observed in our Q4FY21 performance. The addition ofCoke to our portfolio of products in the fourth quarter also boosted our revenues for theyear. We expect to reap the full downstream benefits of the Coke oven expansion exercisefrom FY22 onward.
A CONDUCIVE ENVIRONMENT
Yet our progress in FY21 was not all smooth sailing. The total lockdown brought ouractivities to a near complete halt. However the second half of the year witnessed abetter than expected recovery. As the lockdown eased across the nation steel and iron oreconsumption began to pick up resulting in improvement in the prices of our minerals. AsGovernments across the world ramp up their development work and infrastructuredevelopment we expect this demand to sustain and incresse. We are thus optimistic aboutour prospects in FY22.
Needless to say a healthy external environment bodes well for the Company's ongoingand upcoming expansion plans. SMIORE is well-positioned to capture future opportunities inthe industry and believes that its continuing transformation will further enable it tobecome an integrated player in the industry.
AN AMBITIOUS JOURNEY_AHEAD
SMIORE is focused on its ambition to set up a 1MTPA fully-integrated steel plant in thenear future. Though we still have a long journey ahead of us we are certain that our hardwork perseverance and skilled execution will see us through and help us realise ourgoals. This strategic move is on account of the Company preparing and mitigating itselfagainst long-term risks. We are confident that our shift from a merchant miner to anintegrated player in the steel sector will serve us well in the years to come. We believethat our best days are still ahead of us. With a new leadership at the helm bringing inrenewed energy and ideas we will scale greater heights going forward. With anexecution-focused approach SMIORE has bold plans to making the Company self-sufficientand future ready.
I wish you all great health and safety as pandemic wanes. I am grateful for yourcontinued support and faith in us and resolve to remain focused on the mission ofcreating maximum value for all our stakeholders.