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Tata Metaliks Ltd.

BSE: 513434 Sector: Metals & Mining
NSE: TATAMETALI ISIN Code: INE056C01010
BSE 14:55 | 17 Aug 625.00 5.55
(0.90%)
OPEN

637.00

HIGH

637.00

LOW

613.00

NSE 14:44 | 17 Aug 625.50 4.10
(0.66%)
OPEN

624.95

HIGH

633.00

LOW

624.90

OPEN 637.00
PREVIOUS CLOSE 619.45
VOLUME 2927
52-Week high 975.10
52-Week low 605.95
P/E 13.10
Mkt Cap.(Rs cr) 1,581
Buy Price 622.85
Buy Qty 70.00
Sell Price 623.95
Sell Qty 44.00
OPEN 637.00
CLOSE 619.45
VOLUME 2927
52-Week high 975.10
52-Week low 605.95
P/E 13.10
Mkt Cap.(Rs cr) 1,581
Buy Price 622.85
Buy Qty 70.00
Sell Price 623.95
Sell Qty 44.00

Tata Metaliks Ltd. (TATAMETALI) - Chairman Speech

Company chairman speech

Creating Sustainable Growth

The Company recorded a 34% growth in turnover with increased marketshare despite a relatively sluggish industry growth. Earnings before interestdepreciation and taxes (EBITDA) increased by 31% to I 297 crores from I 226 crores in theprevious year primarily on account of increase in sales volumes and improved costefficiencies as a result of structural cost reduction projects.

Koushik Chatterjee

Chairman

Dear Shareholders

It is my pleasure to present to you the Company's 1st Integrated Reportand the Annual Report for the financial year ended March 31 2018. During the lastfinancial year the global economy experienced a cyclical recovery with a rebound ininvestment manufacturing activity and trade in the backdrop of benign global financingconditions accommodative monetary policies and higher commodity prices. Howeverincreased protectionism rising geopolitical & trade tensions and higher crude oilprices pose risks to global growth. In this context India continues to remain as one ofthe world's fastest growing economies with a projected growth rate of 7.4% in 2018. Theyear 2017-18 was marked by a number of key structural reforms such as the Goods andServices Tax (GST) which aims to build strength across macro-economic parameters forsustainable growth. The Insolvency & Bankruptcy Code brought by the Government andpassed by the Parliament is a bold step to provide a transparent framework for resolutionof distressed assets. These reform measures are expected to have a positive impact on theeconomy in the long term. Global crude steel output picked-up significantly in 2017 to arecord 1.69 billion tonnes up 5.4% from 2016. This was driven by sustained productionacross both developed and developing economies. India's steel production rose by 6.2% in2017 to a record 101 million tonnes making the country the world's third-largest steelproducer. The growth in the Indian steel sector was driven by improving domestic demandspurred by Government investment in infrastructure. India's demand for Pig Iron alsoremained satisfactory owing to growing industrial activity.

During FY 2017-18 the Company achieved 100% capacity utilisation inhot metal driven by modernisation of one of our blast furnaces.

The demand for Ductile Iron (DI) pipes has been witnessing consistentgrowth owing to several flagship programs of the government including Atal Mission forRejuvenation and Urban Transformation (AMRUT) Smart Cities Swachh Bharat Abhiyan andGovernment's water grid projects for improving water supply and sanitation infrastructurein both urban and rural areas. However GST implementation caused temporary uncertaintieswhich slowed down projects and consequently the demand for DI pipes during the year grewby 4-5% against an expected growth rate of 10-12%.

Encouraging performance

I am happy to report to you another successful year for Tata Metaliks.The

Company recorded a 34% growth in turnover with increased market sharedespite a relatively sluggish industry growth. Earnings before interest depreciation andtaxes (EBITDA) increased by 31% to I 297 crores from I 226 crores in the previous yearprimarily on account of increase in sales volumes and improved cost efficiencies as aresult of structural cost reduction projects. The net profit after tax grew by 37% to I159 crores from I 116 crores in the previous year.

During FY 2017-18 the Company achieved 100% capacity utilisation inhot metal driven by modernisation of one of our blast furnaces. Your Company also enteredinto long-term supply arrangement for coke which along with its captive sources coversnearly 80% of its total requirement.

Pig Iron sales volume showed a robust growth of 46% amid positivemarket sentiments and has retained its leadership in the principal markets of East andNorth India. The DI pipe business recorded a 15% increase in sales volume over theprevious fiscal by improving market share and increased clarity on water projects insecond half of the year post GST implementation.

The Board of your Company has proposed a dividend of I 3 per equityshare for the year under review which is 20% higher than the previous year. As part ofits journey towards achieving cost leadership your Company has initiated anorganizational restructuring exercise to achieve enterprise-wide synergies and processefficiencies. We also expect to benefit from continued investment in cost reductionprojects such as coal injection automation and digitization which are underimplementation.

Your Company has identified six strategic pillars in its journeytowards achieving its long-term objective of ‘Value-led Growth' viz; costleadership being the supplier of choice robust people practices responsible corporatecitizenship focus on downstream/ value added products along with fostering a culture ofinnovation and excellence. Our strategic objectives can be achieved through the‘integrated thinking' process which focuses on all resources and helps in creatinglong-term value for the Company's stakeholders.

Sustainability Matters

In line with the Tata Group ethos and with an objective to give back tothe society the Company strives to work for the socioeconomic upliftment of communitiesnear the Kharagpur plant. Your Company undertakes several CSR interventions classifiedunder 5 Es - Essential amenities Education Employability Employment andEntrepreneurship. Your Company's CSR initiatives has touched the lives of around 10000beneficiaries in 15 villages. We also encourage our employees to participate in variouscommunity development activities and I am happy to share that this year we clocked 6169employee volunteering hours.

As a part of our commitment to reduce the carbon footprint and helpcombat climate change your Company has significantly increased captive power generationthrough waste gas/heat thereby reducing consumption of grid power which is generatedthrough fossil fuels. Further we are undertaking a major drive towards improving fuelefficiency (coke and coal consumption) and target to reduce the same as compared tofinancial year 2017-18.

I would like to take this opportunity to thank all our shareholders fortheir continued support and confidence in the Company and the management. I also expressmy sincere gratitude to our customers and suppliers for their trust and support towardsthe Company. I am also thankful to the unions for maintaining cordial industrialrelations the employees the management team and my colleagues on the Board of Directorsand all other stakeholders for their significant contribution to the Company.

Warm regards

Koushik Chatterjee

Chairman DIN:00004989 Date: April 26 2018