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Tata Metaliks Ltd.

BSE: 513434 Sector: Metals & Mining
NSE: TATAMETALI ISIN Code: INE056C01010
BSE 16:01 | 18 May 738.60 -0.85
(-0.11%)
OPEN

760.40

HIGH

760.40

LOW

731.20

NSE 15:53 | 18 May 735.35 -5.20
(-0.70%)
OPEN

747.00

HIGH

758.35

LOW

732.00

OPEN 760.40
PREVIOUS CLOSE 739.45
VOLUME 6195
52-Week high 1364.90
52-Week low 686.00
P/E 15.48
Mkt Cap.(Rs cr) 2,333
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 760.40
CLOSE 739.45
VOLUME 6195
52-Week high 1364.90
52-Week low 686.00
P/E 15.48
Mkt Cap.(Rs cr) 2,333
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tata Metaliks Ltd. (TATAMETALI) - Chairman Speech

Company chairman speech

Growth through value addition

Dear Shareholders

I hope this letter finds you safe and in good health.

It gives me immense pleasure to present to you the 4th Integrated Report and AnnualAccounts of your Company for the financial year ended March 31 2021.

FY 2020-21 was an unprecedented year with the pandemic causing lockdowns anddisrupting business globally. During the year India's economy contracted by 7.7%. Butthis does not tell the whole story because a massive contraction in Q1FY21 was succeededby progressive improvement to relatively normalised conditions by Q4. The steel industryin particular is riding a cyclical upsurge in prices from H2 FY21 aided by a strong demandrecovery in China and rising input prices especially iron ore.

The dispatches of DI pipes for the industry in general and particularly for yourCompany got impacted in H1 FY21 due to closure of project sites and Government Offices.Although it recorded an inevitable financial loss in Q1 the Company showed resiliencerecovering to a profitable position in Q2. Q3 and Q4 witnessed excellent financialresults on the back of the significant improvement in market conditions and strongoperational performance. Your Company ended the year with its highest ever Profit beforetax of ~` 307 crore (52% increase y-o-y) compared to ~ ` 202 crore in FY20. Your Companywas able to realise an EBITDA margin of 21% and a Return on Capital Employed of 19%despite the challenges and loss of production and sales in Q1.

The Board is pleased to recommend a dividend of ` 4/- per equity share for FY 2020-21.

In the past year the Company has undertaken several strategic initiatives in line withits six business priorities which have started yielding results:

Cost Leadership: Improvement in Blast Furnace performance with the lowestever fuel rates and highest ever pulverised coal injection and oxygen enrichment led tosignificant reduction in hot metal production cost. This has been achieved through asystematic performance improvement programme in the areas of both Operations &

The Company is navigating this challenging environment through strong fiscaldiscipline focus on operational excellence and customer centricity. Our strategy ofgrowth in the value-added Ductile Iron Pipe segment has yielded positive returns with theGovernment's added thrust on improving the water infrastructure in the country.

Maintenance. The Company also commissioned a coke plant expansion project and a 15 MWcaptive power plant; the share of captive coke is now 75-80% particularly importantduring this period of significant price premium. With the Ductile Iron Pipes plantcontinuing to perform well your Company has achieved the position of one of the lowestcost producers in both its businesses.

Supplier of Choice: Your Company has focussed on restructuring itsdistribution channel and implementing a CRM platform to enhance customer experienceincrease customer intimacy and improve service levels.

Robust People Practices: Your Company has increased its focus on skillbuilding and talent retention through Learning & Development and Employee engagementby leveraging digital tools. The Company recorded a positive movement by 14 percentile inits Employee Engagement scores.

Responsible Corporate Citizenship: The Company has launched the ‘TML300 schools project' the objective of which is to provide quality school education to allchildren in the age bracket of 4-14 years in target villages to ensure a child labour freezone.

Focus on Downstream/ Value-add:

The Company resumed its Ductile Iron Pipe project implementation to double itscapacity after a brief halt due to the pandemic

Innovate and Excel: Your Company is building a Digital cultureimplementing several projects across ‘Smart machines' ‘Real-time data &analytics' and ‘Business on mobile'.

Although the overall demand and price conditions are strong the overall businessenvironment continues to be uncertain given the threat of additional waves of thepandemic. The Company continues to navigate these challenges through a focus on financialdiscipline operational excellence customer centricity and a thrust towardsdigitalisation. The Company's strategy of growth in the value-added Ductile Iron Pipesegment continues to yield positive returns with the Government's increased thrust onimproving the water infrastructure in the country especially through its flagship JJM (JalJeevan Mission) project.

During the year under review the Board of your Company approved a scheme ofamalgamation of your Company into and with Tata Steel Long Products Limited (TSLP). Theamalgamation will bring together value-added long products under a single entity presenta single face to customers across complementary products capture upstream synergiesfacilitate sharing of resources and knowledge and reduce costs thereby maximising valuefor the shareholders. The applications to the stock exchanges have been made and are beingpursued for an early approval.

The health and safety of our workforce remains a priority for the Company. During theperiod of highest uncertainty between the end of March 2020 to May 12 2020 theoperations were suspended. A comprehensive plan to prevent the spread of infection withregular testing isolation and treatment was implemented which helped the Company tocontinue its business operations throughout the year smoothly. In line with its commitmenttowards the community your Company apart from financial contribution to the State'sDisaster Management Authority along with contributions from its employees provided COVIDrelief for the vulnerable in nearby communities. The Company is continuing to support theLocal Government and private hospitals in strengthening their healthcare facilities.

During the year the Company also developed a long-term decarbonisation strategy aspart of its efforts towards long-term sustainability and be carbon neutral by 2050.

Your Company was recognised as the ‘Industry Leader' in the Tata BusinessExcellence Model assessment process joining an elite club of a handful of Tata companieswith the highest operating standards.

I would like to take this opportunity to thank all our shareholders for their continuedsupport and confidence in the Company and the Management. I also express my sinceregratitude to the Government our customers suppliers and partners for their trust andsupport to the Company. I am also thankful to the Unions for their constructive engagementand strong relationship the employees the management team my colleagues on the Boardand other stakeholders for their significant contributions to the Company during FY2020-21.

Warm regards

Koushik Chatterjee

Chairman Management

(as on April 14 2021)

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