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Tinplate Company of India Ltd.

BSE: 504966 Sector: Metals & Mining
NSE: TINPLATE ISIN Code: INE422C01014
BSE 00:00 | 29 Sep 134.35 2.20
(1.66%)
OPEN

133.00

HIGH

139.05

LOW

130.25

NSE 00:00 | 29 Sep 134.50 2.25
(1.70%)
OPEN

133.30

HIGH

139.20

LOW

130.30

OPEN 133.00
PREVIOUS CLOSE 132.15
VOLUME 62422
52-Week high 163.95
52-Week low 56.50
P/E 17.72
Mkt Cap.(Rs cr) 1,406
Buy Price 134.35
Buy Qty 1999.00
Sell Price 134.35
Sell Qty 501.00
OPEN 133.00
CLOSE 132.15
VOLUME 62422
52-Week high 163.95
52-Week low 56.50
P/E 17.72
Mkt Cap.(Rs cr) 1,406
Buy Price 134.35
Buy Qty 1999.00
Sell Price 134.35
Sell Qty 501.00

Tinplate Company of India Ltd. (TINPLATE) - Chairman Speech

Company chairman speech

It gives me great pleasure to present to you the 101st Annual Report of your Companyalong with the financial and operating performance for FY 2019-20.

The year 2019 witnessed a challenging business environment. Against an initialprojection of 3.5% global GDP growth eased to 2.9%. The generally sluggish demandenvironment was impacted by rising trade-protectionism driven by tensions between Chinaand the USA coupled with other geopolitical tensions. The COVID-19 pandemic has furtheradversely impacted global economic activity from March 2020. The Indian economic growth inGDP terms also decelerated in FY 2019-20 to 4.2%. In_fact in the fourth quarter of FY2019-20 India's GDP growth declined to 3.1% mainly due to the pandemic and relatedlockdown. Economic revival will be slow and with varied speeds of recovery acrossgeographies and sectors. A key risk is the restoration of normalcy to global supply chainsand spending confidence among consumers while markets have pinned their hopes ongovernment stimulus to revive demand. Your Company's foremost priority since March 2020has been the health and safety of its employees and the communities in which it operates.Keeping this in mind the Company had suspended the operations at its plant in Jamshedpurtill end of April 2020. The plant has since resumed activity (presently operating at ~60%capacity) on receiving the necessary permissions from the local authorities and expects toramp up in the second half of the year. The Company has put in place strict safetyprotocols within the plant as well as office premises as per requisite guidelines.

The COVID-19 related lockdown has adversely affected the hospitality and constructionindustries thus affecting the domestic demand for tinplate. On the other handinternational markets have shown increasing demand for processed food and aerosol cans andthe Company is well positioned to increase its exports in response. The Company alsobelieves that some balance will be restored to pricing of tinplate in the domestic marketafter the decision to impose anti-dumping duty on imports of Tinplate. The overalloperational performance of the Company during the year under review remained subdued dueto lower production volumes. This was coupled with the slowdown in sales in the fourthquarter and therefore the turnover of the Company in FY_2019-20 was lower by 19% ascompared to that of FY 2018-19. However your Company's profitability improved by ~14% ascompared to that of the previous financial year mainly due to an optimal sales mix andlower cost of raw materials. The Company continues to be debt free. Given the uncertainbusiness landscape the Company intends to preserve cash in the near term. Consequentlythe Board of Directors has recommended a dividend of Rs1 per equity share for FY_2019-20as compared to dividend of Rs2 per equity share paid in FY 2018-19.

The Company will maintain its focus on reducing costs and improving efficiency in astructured manner whilst expanding its export portfolio. Despite the growing domesticcompetition your Company strives to increase its market share by focussing on productquality and development and increasing its relationship with its long-term customers. TheCompany's Management will continue to work towards making the enterprise more efficientprofitable and value creating in future.

On behalf of the Board of Directors of the Company I take this opportunity to thankall business associates shareholders government and other stakeholders for theirenduring faith and support. I would also like to thank the respective Unions formaintaining industrial harmony at the facilities of the Company and the employees fortheir efforts and contributions to the Company.

Warm regards
Koushik Chatterjee
Chairman