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Sarda Energy & Minerals Ltd.

BSE: 504614 Sector: Metals & Mining
NSE: SARDAEN ISIN Code: INE385C01013
BSE 00:00 | 25 Feb 187.85 -4.75
(-2.47%)
OPEN

191.50

HIGH

193.15

LOW

186.50

NSE 00:00 | 25 Feb 188.30 -4.45
(-2.31%)
OPEN

191.10

HIGH

194.00

LOW

186.90

OPEN 191.50
PREVIOUS CLOSE 192.60
VOLUME 2585
52-Week high 331.00
52-Week low 139.80
P/E 3.15
Mkt Cap.(Rs cr) 677
Buy Price 186.00
Buy Qty 1.00
Sell Price 190.00
Sell Qty 1.00
OPEN 191.50
CLOSE 192.60
VOLUME 2585
52-Week high 331.00
52-Week low 139.80
P/E 3.15
Mkt Cap.(Rs cr) 677
Buy Price 186.00
Buy Qty 1.00
Sell Price 190.00
Sell Qty 1.00

Sarda Energy & Minerals Ltd. (SARDAEN) - Chairman Speech

Company chairman speech

Message from the CMD

Dear Shareholders

It gives me a great pleasure to report that our performance in 2017-18 has been thebest ever both operationally as well as financially. The results achieved during the yearclearly reflect our philosophy of disciplined planning and execution of thegrowth-accretive strategies. We are neither over-aggressive nor dormant. We have alwaystaken step-by-step approach towards maintaining a strong financial health of the Companyallowing us to sail through even in the toughest of times. As the business environmentimproved the positive impact was visible in our performance. We have focussed on backwardintegration and have gradually ramped up Iron Ore production capacity. Today ourdifferent business divisions complement each other thereby increasing overall efficiencyand profitability. The results are clearly visible.

On consolidated level we achieved record production of pellet steel billets wirerods ferro alloys and hydropower. We have achieved record turnover of ' 2200 CroreEBITDA of ' 470 Crore andprofit of ' 200 Crore each growing 41% 66% and 62%respectively as compared to previous year. Our earnings per share has increased from ' 36to ' 56 recording a 56% increase in the EPS. The Company also declared highest everdividend of '5 per share rewarding all our shareholders for the faith and confidenceshowed by them in the Company and its managementThe Indian Government continued to drivereforms across sectors to improve transparency and boost investments in the country. Onesuch revolutionary reform was the implementation of Goods and Services Tax (GST). The newtax mechanism resulted in some transitory pain for a few months. Despite this temporarylull India emerged as a fast growing major economy with 6.7% growth in GDP. There was astrong revival in the country's investment and consumption. Besides there has also beenencouraging development in the steel industry. This has been a great positive up-cyclewith India overtaking Japan to become the world's second largest steel producer. Thanks toGovernment's increasing impetus on improving country's infrastructure and promotinginitiatives like 'Housing for all' and smart cities development.This will enhance thedemand forsteel products and benefit us.

On the backdrop of a favourable positive steel cycle for next five to seven years asanticipated by us we have initiated expansion programs of our steel-production capacityat Raipurand ferroalloys production capacityatVisakhapatnam. Besides we are alsoenhancing our pellet production capacity by 2 lakh metric tonne without incurring anyadditional capex environment clearances for which are awaited.

On the hydropower front we commissioned our 24-megawatt hydropower plant at Gullu inChhattisgarh. Our strategic foray into hydropower is a conscious attempt to generate greenenergy and add perennial stream of cash flow to sustain the down turn and de-riskourselves from the cyclical effect of the steel industry. There has been very low capacityaddition in the hydropower generation as against a seguential rise in demand overthe pastfew years. This would allow usto fetch higher realisations per unit going ahead. Asaresult we are guite bullish about our upcoming hydro project in Sikkim. It willsignificantly add to our revenues and strengthen our bottom line once it comes in streamin thefinancial year 2019-20.

At SEML we have consistently focussed towards driving efficiencies. Over the past fiveto six years we have continuously demonstrated several cost-reducing initiatives acrossour operations. Besides an egual attention has been given to the safety and environmentwaste recycling and improving recoveries leading to improved margins.

As a responsible corporate we have always given an egual attention to the communitiesresiding at our plant's vicinity. We have adopted 90 singleteacher schools in the tribalareas of Chhattisgarh for providing basic education. We have actively sponsored medicalfacilities and provided assistance in the primary healthcare across villages. We alsooperate a well-eguipped ambulance with doctors and have set up basic first-aid facilitiesin the villages surrounding our iron ore mine. We have extended financial assistance foreducational purposes including infrastructure facilities salaries to teachers busfacilities for children etc.

As a closing note I would simply like to state that we have been strategicallyexpanding ourongoing operations and scouting forfuture growth through the underlyingindustrial opportunities. I would like to acknowledge the efforts of our employees and theleadership team for successfully implementing company's execution strategies. I also thankthe respected Board Members for their able guidance. And lastly I wouldliketothankourstakeholdersfor believing our story and being a part of our growth journey.

Yours sincerely

Kamal Kishore Sarda