Dear Shareholders
For the year ended 31 March 2021 your Company's consolidated Revenue from operationsincreased from Rs 6833.44 million in FY 2019-20 to Rs 9763.63 million in FY 2020-21 andEBITDA was at Rs 44.98 million in FY 2020-21.
The operational performance and margins of your Company have improved inspite ofnon-availability of working capital for operations and challenges due to other externalfactors including the outbreak of Covid-19 pandemic.
THE INDUSTRY
The global High Carbon Ferro Chrome production was at approx. 12.47 million tonnes in2020 out of which India's Ferro Chrome production stood at approx. 1 million tonnes.India exported approx. 65% of its Ferro Chrome production primarily to China SouthKorea Japan and Taiwan. China accounted for approx. 70% of global Ferro Chromeconsumption.
India's Chrome Ore production dropped from approx. 3.92 million tonnes in FY 2019-20 toapprox. 2.78 million tonnes in FY 2020-21. OMC produced only approx. 1 million tonnes ofChrome Ore in FY 2020-21 against an EC limit of 1.53 million TPA resulting in a hugesupply-demand imbalance for Chrome Ore.
Iron Ore production in Odisha dropped from 142 million tonnes in FY 2019-20 to approx.111 million tonnes in FY 2020-21 out of which 65 million tonnes was from captive mines.The exports of Iron Ore from Odisha also increased from 17.4 million tonnes in FY 2019-20to 29 million tonnes in FY 2020-21. As a result the merchant supply of Iron Ore gotreduced drastically in FY 2020-21 creating a supply-demand imbalance which has resulted inan unprecedented increase in Iron Ore prices.
The Chrome Ore and Iron Ore production volume and price fixing mechanism by OMC for enduser industries remains a key challenge.
VISION & STRATEGY
Your Company is committed to its vision to create long term stakeholder value throughvalue addition of natural resources. The Company is focused on implementing DebtResolution as per Reserve Bank of India (RBI) guidelines and plans to raise funds forworking capital by inducting Investor reducing cost and keeping the Plant operational.
OUTLOOK
The Government's focus on implementing reforms to revive the economy is expected toincrease demand for Ferro Alloys and Iron & Steel products going forward. However theoutcome of mine auctions with extremely high bid premium is likely to impact theavailability and price of both Iron Ore & Chrome Ore. The high raw material energylogistics & finance costs will remain a concern and challenge going forward.
I would like to place on record my sincere appreciation and gratitude to the entireteam of VISA Steel for their relentless commitment inspite of the challenging businessenvironment. I am grateful to the members of the Board of the Company for their invaluableguidance and contribution and acknowledge the support of all shareholders. I would alsolike to convey my sincere thanks to all the stakeholders including lenders supplierscustomers employees Government officials etc. for their valued support as we navigatethrough these challenging times and I hope to continue to receive your support in thefuture.
Warm regards & best wishes
Vishambhar Saran
Chairman
Your Company is committed to its vision to create long term stakeholder value throughvalue addition of natural resources.
Mr. Vishambhar Saran
Chairman
