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Supershakti Metaliks Ltd.

BSE: 541701 Sector: Metals & Mining
NSE: N.A. ISIN Code: INE00SY01011
BSE 00:00 | 03 Aug 360.00 0
(0.00%)
OPEN

326.00

HIGH

360.00

LOW

326.00

NSE 05:30 | 01 Jan Supershakti Metaliks Ltd
OPEN 326.00
PREVIOUS CLOSE 360.00
VOLUME 40500
52-Week high 536.70
52-Week low 305.00
P/E 23.42
Mkt Cap.(Rs cr) 415
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 326.00
CLOSE 360.00
VOLUME 40500
52-Week high 536.70
52-Week low 305.00
P/E 23.42
Mkt Cap.(Rs cr) 415
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Supershakti Metaliks Ltd. (SUPERSHAKTIMET) - Chairman Speech

Company chairman speech

Dear Shareholders

The global events unfolding has shifted the traditional paradigm of life and living. Itbrings into focus the collective spirit of the human inventiveness not only to face theexisting challenges but also to remain able and stable and thrive in a new normal.

At Super Shakti we have always wanted to build a company that endures across marketcycles. The strong and vibrant stakeholder ecosystem we have built over the yearsstrengthens our resilience and provides a strong foundation to propel our thrust forgrowth and co-create a shared future.

Perspective

At Super Shakti we have consistently believed that reasonably visionary businessesmove faster address customer needs more efficiently and are better equipped to enhancestakeholder's value. In spite of challenging market scenario and global pandemic we areable to deliver positive results and our performance are more or less in line with theindustry standards. Pandemic induced disruptions during Q1 of FY 2020-21 then a V-shapedresurgent domestic economy and governments impetus on infrastructure spending led to abooster into the demand for our products during Q2 to Q4 of FY 2020-21. Considering thehigh correlation of iron & steel products demand with the domestic economy and otherglobal & local perspectives our performance demonstrates our robust fundamentalsdriven by resource efficiency growing prominence across infrastructure majors andenhanced brand reach. On the backdrop of these fundamentals we achieved a Turnover of `376.83 crores. Our profit after tax during the year stood at `13.22 crores.

Deleveraging

At Super Shakti we believed that the most visible intent of our need to emerge as asustainable company would be reflected in our commitment to reduce the debt burden on ourbooks. This need to moderate debt was in response to extensive changes in the marketenvironment. Across the last two decades the global economic order has been increasinglymarked by unforeseen development often referred to as Black Swans. During these phasesone of the first casualties has been a decline in public and private spending affectingthe off take of steel products. These events have in turn affected the debt and interestrepayment capability of the debt-burdened steel companies turning some of them sick andsome towards ownership transfer.

We realised that it is imperative to moderate debt to remain solvent in ourcapital-intensive sector. We became increasingly focused on using credit discipline witha premium on the ability to moderate debt and live with a cleaner Balance Sheet.

Growth drivers

a) Atmanirbhar Bharat Abhiyan: Atmanirbhar Bharat

Abhiyaan or Self-reliant India is a special economic and comprehensive package of ` 20lakh crores - equivalent to 10% of India's GDP to fight COVID-19 pandemic in India.

The aim is to make the country and its citizens independent and self-reliant in allsenses. Five pillars of Aatma Nirbhar Bharat Economy Infrastructure System VibrantDemography and Demand.

b) Affordable Housing: The credit-linked subsidy scheme for middle incomehouseholds (income group ` 6-18 Lakh) was extended to March 2021. The move is expected toinfuse fresh investments of ` 70000 crores in housing sector thereby boosting sectorslike steel cement and create jobs.

c) Vocal for local: The government has urged all the stakeholders in the steelindustry to come together and utilize only domestically produced steel. The Oil and Gassector is one of the largest end-users of steel. The steel demand is set to rise with theexpansion of city gas distribution network for covering 70% of India's populationrefining capacity augmentation roadmap to setup 10000 CNG stations and exploration andproduction activities. Procuring steel from domestic manufacturers and minimizing steelimports will generate employment opportunities in the sector and spur MSMEs growthencouraging them to produce more value-added products. The opening of coal blocks forcommercial mining aimed at achieving self-sufficiency in energy demand will furtherbenefit the overall steel industry.

d) Encouraging Indigenise Production: The Ministry of Defence (MoD) has createda list of 101 items for which there would be an embargo on the import beyond the timelineindicated against them. This would offer a great opportunity to the Indian defenceindustry to manufacture these items using their own design and development capabilities tomeet the requirements of the Armed Forces in the coming years. This list includes somehigh technology weapon systems like artillery guns assault rifles corvettes sonarsystems transport aircrafts light combat helicopters (LCHs) radars and many other itemsto fulfill the needs of our Defence Services.

e) Opportunity in Indian Railways: Indian Railways plays a key role in theeconomy with intermodal share of rail in freight traffic at around 35%. It continues toenjoy a lion share of transportation of bulk commodities like coal iron ore cement andfood grains. According to the Union Budget 2020-21 the railway's capital expenditure ispegged at `1.61 lakh crores.

f) The New Industrial Policy Regime: The New Industrial Policy Regime hasallowed private investment in the steel industry by eliminating it from the list ofindustries reserved for the public sector and exempting it from compulsory licensing. Theimports of foreign technology and Foreign Direct Investment (FDI) are permitted up tocertain limits under the automatic route. Additionally the introduction of theGovernment's National Steel Policy (NSP) 2017 has set up a roadmap of the growthtrajectory of the Indian steel industry until 2030-31.

g) Steel Scrap Recycling Policy: In a bid to ensure quality scrap for the steelindustry the government has come out with a Steel Scrap Recycling Policy to reduceimports conserve resources and save energy. The policy aims to promote circular economyin the steel sector besides promoting a formal and scientific collection dismantling andprocessing activities for end of life products. It also aims to decongest the Indiancities from reuse of ferrous scrap. The country's steel scrap imports is valued at `24500 crore. The scrap policy will ensure processing and recycling of products in anorganised safe and environment friendly manner besides evolving a responsive ecosystemand producing high quality ferrous scrap for quality steel production minimising thedependency on imports. And the gap between demand and supply of scrap can be reduced inthe future and the country may be self-sufficient by 2030. With steel production rising to250 MT the industry's steel scrap requirement is expected to rise to 70-80 MT leading toan additional requirement of 700 scrap processing centres and 2800-3000 collections anddismantling centres across India.

Sound Governance & Sustainability

We are committed to high standards in corporate governance and aim to implement bestpractices beyond compliance requirements. Our Board currently comprises of professionaldirectors from varied background and considerable working experience. The Company hadalso adopted various measures for a cordial working relation between the workers and themanagement. Workshops are being organized on a regular basis to impart training to theCompany's personnel and also to make them aware of the developments in the Industry.

As a socially responsible corporate citizen we always undertake significant steps touplift the morale of the people and betterment of the environment in our surrounding.

Looking Ahead

In this overview I cannot assure the shareholders that everything is under controlunder the present circumstances. However what we do know is that our shock absorbers rundeeper than most peers. At the end of the day pride of ownership usually prevails amongconsumers and if we continue to make the good better we will get the desired goals. Wewill continue to focus on enhancing efficiency optimizing costs and increasing liquidityand preparing for the big leap. We are optimistic that this will translate into superiormargins returns on capital employed and market capitalisation enhancing value in thehands of all those who own shares in our company.

With warm regards

Sincerely

Dilipp Agarwal

Chairman

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